Impact of Foreign Linkages on Innovation Activity of Manufacturing Firms in CALABARZON

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This study assesses the impact of foreign linkages on knowledge transfer and innovation of Philippine manufacturing firms in CALABARZON region. Using a probit estimation and an IV regression, its results indicate that having foreign linkages and participating in the global value chain can have a positive impact on both process and product innovations. It thus calls for the strengthening of regional and global linkages to sustain the manufacturing growth in CALABARZON. It also highlights the role of industrial parks and the need to recognize the value of establishment-level data.