What determines MSE upgrading? Evidence from India, Egypt and the Philippines. Dr. Aimée Hampel-Milagrosa Dr. Markus Loewe Caroline Reeg. Paper presented at the FMC Conference “Changing Paradigm of Cluster Development” Delhi, 20 February 2014. Outline. 1. Research question
What determines MSE upgrading?Evidence from India, Egypt and the Philippines
Dr. Aimée Hampel-Milagrosa Dr. Markus Loewe
Paper presented at the FMC Conference “Changing Paradigm of Cluster Development” Delhi, 20 February 2014
1. Research question
2. Definitions & conceptual framework
3. Research methodology
What are the most important factors of upgrading?
What are the determinants?Extensive literature is offering manifold explanations:
New tothemarket=> innovationrent
Business networks(inter-firm linkages)
Egypt: 10-49 empl.
India: 10-19 empl.
Philippines: 6-10 empl.
Egypt: 50-99 empl.
India: 20-99 empl.
Philippines: 11-99 empl.
Egypt: 1-9 empl.
India: 1-9 empl.
Philippines: 1-5 empl.
Number of employees
Identification of upgraders by:
(ii) passed threshold
(ii) grown faster than competitors (new to the market: innovation rent)
The Social Network
The Business Networks
The Business Environment
family savings / Friends
employees as shareholders
availability of (skilled) workers
incentives for workers to stay
readiness to accept risk
economic stability, rule of law
(global) value chains
published market information
own market research
exchange of ideas
Availability of external training
German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)
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