Measuring Technological Capabilities in Kosovo’s Manufacturing Sector

From a Schumpeterian perspective, national economic growth depends on firms with growth capacity, while firms with growth capacity are defined as business entities capable of combining business skills and generating goods with added value. The identification of the capabilities that lead to business growth continues to be a major research topic with several studies highlighting various internal capabilities that enable and/or constrain firm growth. Nevertheless, our understanding of the firm capabilities that lead to firm growth is scant (Sutton & Trefler, 2016). Also, most empirical work examines developed economies. Several studies use an adapted Schumpeterian approach to study the process of building technological capabilities in developed economies (Lall, 1992; Bell & Pavitt, 1993; Kim, 1997; Kumar et al., 1999; Dutrenit, 2000; Lee et al., 2021, etc.). The absence of research on developing economies is particularly evident in the area of technological capabilities.