Business sector innovation

The effectiveness of innovation systems depends on the depth and diversity of innovation capabilities that are accumulated by, and deployed in, business enterprises. This chapter provides a brief introduction to the business landscape of Southeast Asian countries and explores the reasons for their diverse performance in R and D and patenting. Next, it discusses the role of foreign firms and subsidiaries, which are a defining feature of the industrial landscape in the region and are a central pillar of government strategies to upgrade national innovation systems. The role of large indigenous firms is then discussed, with a final section covering entrepreneurship and investment financing.