TECHNOLOGY INSTITUTIONS IN SMALL PRODUCERS’ CLUSTERS: CASE STUDIES OF CRAFT VILLAGES IN NORTHERN VIETNAM

Le Thi Thu Ha, Nguyen Thi Huong

Abstract

Abstract:
Technology and innovation have been recognized as important and crucial to reducing
poverty, generating wealth and bringing social progress for Vietnam. But the result is
different in different sectors. Craft villages are composed mostly of small and micro
household business characterized by family ownership and heavy involvement of the family
members. Many clusters have achieved great success thank to applying innovation in
production and business. What enabled small producers to introduce new technology into
innovation process? How has new technology been developed, adapted and disseminated?
There could be an investigation of innovation in informal micro and small enterprises
with a view to offer alternatives. Actually, recent research shows changes in competitive
capabilities, living conditions and the environment in informally organized craft villages.
We propose to look at some examples of small-scale craft villages: Bat Trang and Duong
Lieu in northern Vietnam. Both were identified as innovation industries based on the three
common key elements: newness, value creation and innovative process.
Keywords: Technology, Institution, Innovation, Innovative Process, Craft villages.