Firms in Emerging Economies May Pursue Different Routes to Upgrading

Multiple Choice

Firms in emerging economies may pursue different routes to upgrading through innovation. Which of the following is not a common pathway?

A) Capability upgrading - improving the range of functions undertaken, or changing the mix of functions, for example, production versus development or marketing.
B) Process upgrading - incremental process improvements to adapt to local inputs, reduce costs or to improve quality.
C) Competitiveness upgrading - adopting best-practice methods from developed economies.
D) Inter-sectoral upgrading - moving to different sectors, for example, to those with higher value-added.