Firms in emerging economies may pursue different routes to upgrading through innovation. Which of the following is not a common pathway?
A) Capability upgrading - improving the range of functions undertaken, or changing the mix of functions, for example, production versus development or marketing.
B) Process upgrading - incremental process improvements to adapt to local inputs, reduce costs or to improve quality.
C) Competitiveness upgrading - adopting best-practice methods from developed economies.
D) Inter-sectoral upgrading - moving to different sectors, for example, to those with higher value-added.

Question

Quizplus · Accepted Answer

Competitiveness upgrading is not a distinct pathway described for firms in emerging economies to pursue innovation. Instead, it is a broad goal that can be achieved through various means, including capability, process, and inter-sectoral upgrading. These specific pathways involve enhancing functions, improving processes, or shifting sectors to add value, rather than directly adopting best practices from developed economies.

Firms in Emerging Economies May Pursue Different Routes to Upgrading