Abstract
The performance of the Philippine automotive industry has steadily improved following the Asian financial crisis. However, relative to the performance of the automotive industry in other countries, the sector has languished. To understand the challenges being faced by the automotive assemblers, as well as parts and components manufacturers, the innovation capability and activities of selected establishments are analysed following the framework developed by J. Bessant. This paper finds that despite having an awareness of the importance of technology and upgrading, some of the automotive firms are not able to translate this awareness into other technology activities.
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