This study is to explore the factors that impact the innovation capacity of enterprises in the Vietnam Southern high tech industry. Besides the qualitative method, the study carries out a survey of 380 enterprises in the fields of electronics, microelectronics, information technology, telecommunications, precision engineering, automation, biotechnology, and nanotechnology. | 66 Doan Thi Hong Van & Bui Nhat Le Uyen / Journal of Economic Development, 24(3), 66-93 Factors affecting innovation capacity in Vietnamese Southern high technology industries DOAN THI HONG VAN University of Economics HCMC – hongvan@ BUI NHAT LE UYEN HCMC University of Technology – lephuonghauyen@ ARTICLE INFO ABSTRACT Article history: Numerous studies have demonstrated that the success of businesses in the era of knowledge-based economy depends on their innovation capacity (Azevedo et al., 2007). Therefore, the main goal of this study is to explore the factors that impact the innovation capacity of enterprises in the Vietnam Southern high tech industry. Besides the qualitative method, the study carries out a survey of 380 enterprises in the fields of electronics, microelectronics, information technology, telecommunications, precision engineering, automation, biotechnology, and nanotechnology. The results reveal that total quality management, internal human resources, absorptive capacity, government support, and collaboration networks impact positively on the innovation capacity. In addition, the research proposes solutions for high tech enterprises to boost their innovation capacity in the future. Received: July, 28, 2016 Received in revised form: Apr., 21, 2017 Accepted: June, 30, 2017 Keywords: Innovation Total quality management Human resources Absorbtive capacity Collaboration networks High-tech industry Doan Thi Hong Van & Bui Nhat Le Uyen / Journal of Economic Development, 24(3), 66-93 67 1. Introduction During two decades of the 80s and 90s of the 21st century and then, the basic theory of innovation from the previous generation has inspired many researchers to explore and gradually perfect the concept of innovation capacity. Suarez-Villa (1990) suggested that if the innovation capacity of a country/region or a geographic area develops quickly, it can attract more highly skilled and experienced labor, promote .
