SMEs in Developing Asia: New Approaches to Overcoming Market Failures | Asian Development Bank

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SMEs in Developing Asia: New Approaches to Overcoming Market Failures

Publication | November 2016
SMEs in Developing Asia: New Approaches to Overcoming Market Failures

This book focuses on the market failures encountered by enterprises in the key areas of technology and innovation, credit and finance, education and skills, and market access.

A vibrant stratum of small and medium-sized enterprises (SMEs) is critical for the growth and development of Asian economies. These enterprises generate employment, contribute to investment, participate in value chains, and support innovation. SMEs that seek to sustain and grow their operations, however, face a variety of constraints, many of which are directly related to size. These “size-induced market failures” create a role for public policy intervention.

This book focuses on the market failures encountered by enterprises in the key areas of technology and innovation, credit and finance, education and skills, and market access. Obstacles to SME participation in the rapidly expanding regional and global value chains are also examined. The chapter authors examine national and multicountry experiences in South, East, and Southeast Asia.

For hard copies, please contact Brookings Institution.

Edited by: Paul Vandenberg, Pornpinun Chantapacdepong, and Naoyuki Yoshino

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Contents 

  • Small Firms, Market Failures, and Public Policy
  • Part I: Innovation and Technology
    • Technology and Innovation Policies for SMEs in East Asia
    • Does Internal and External Research and Development Affect SME Innovation? Evidence from India and Pakistan
    • Barriers to Innovation in Indian SMEs
    • Dynamics of Innovation and Internationalization among SMEs in Viet Nam
  • Part II: Finance
    • The Impact of Finance on the Performance of Thai Manufacturing SMEs
    • Optimal Credit Guarantee Ratio for Asia
    • Commercial Bank Innovations in SME Finance: Global Models and Implications for Thailand
    • Bridging the “Missing Middle” between Microfinance and SME Finance in South Asia
    • Finance for MSMEs in India: Sources and Challenges
    • Role of the Credit Risk Database in Developing SMEs in Japan: Ideas for Asia
    • Credit Surety Fund: A Credit Innovation for MSMEs in the Philippines
  • Part III: Human Capital
    • Skills Training by SMEs: Innovative Cases and the Consortium Approach in the Republic of Korea
    • Small Firms, Human Capital, and Productivity in Asia
    • Is There a Size-Induced Market Failure in Skills Training?