Innovation, Export Performance and Profitability of Lao Garment Exporters

This study examines the relationship between innovation and export performance and firm profitability of Lao garment factory using resource-based view theory to posit the conceptual model. Structure equation (path analysis) is used to analyze the data from the current field survey of industrial cluster of the Lao garment industry, 2007. The findings suggest that innovations (product and production process innovations) are important factors in determining export performance and hence, firm profitability. This study gives policy implications on how owners/managers of Lao garment firms decide to be innovator and how public authorities promote and stimulate the investment in innovation.