Abstract
Based on previous literature on innovation at the firm level as well as literature on the business environment in developing countries and in Vietnam, this research proposes four propositions on characteristics of firm innovation in the country. Two Vietnamese firms, one of them operating in the software industry and the other operating in the electronic game industry were selected to find out their innovation characteristics. Within each case, a triangulation of data collection methods was employed including field observations, documents, and direct personal interviews. It was found that evidence collected from the two cases generally supported the proposed propositions. The research provides a number of important implications for the government and businesses in Vietnam.
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