Innovation capability building and learning mechanisms in latecomer firms: recent empirical contributions and implications for research

Abstract

This article reviews research in the past 25 years on learning processes as a source of innovation capability building in firms from developing/emerging economies, which are known as latecomers. We find that if latecomer firms make limited efforts to acquire and create the resources required to innovate, they will (1) deepen their innovative capabilities only slowly, if at all; (2) have difficulties crossing discontinuities between different levels of capability; (3) tend to remain locked into forms of 'follower' innovation rather than innovating as leaders. This article contributes to expanding our understanding of learning mechanisms in innovation capability building beyond the context of firms from advanced economies, and recommends areas for new research into latecomer learning and innovation capability building.