This book examines the dynamics of knowledge spillovers, sectoral innovation, and firm-level productivity within Vietnam’s manufacturing industries. Using Spatial Regression Models and Cross-Classified Models, it analyzes the effects of R&D, foreign direct investment, and trade activities on innovation across 38 sectors and 62 provinces in Vietnam. The findings in the book support the predominance of intra-industry spillovers, aligning with the Marshall hypothesis rather than Jacobs externalities. Sectoral innovation is shown to be positively influenced by R&D and export activities, while FDI and imports exhibit negative associations. At the firm level, characteristics such as size, capital intensity, and export orientation consistently correlate with higher total factor productivity. The book also explores the lagged positive effects of sectoral innovation and provincial human resource externalities on firm productivity, offering insights into the spatial and structural determinants of industrial performance. This book would be an insightful read for those interested in Vietnam's industrial sectors.
