Innovation process in ASEAN firms: Focus on internal capability, external linkages and transmission channels

Based on survey data from four ASEAN economies, this paper identifies the content of internal capability at the technological level, in managerial organization, and through human resources. To make this concept more tractable for analysis, the index of internal capability using AHP (Analytical Hierarchy Process) was used. This paper also examines using regroups estimation methods how external sources such as MNCs, universities, and public organizations enhance internal capability. This paper also attempts to identify the transmission mechanisms through which external sources influence internal capability.