This paper offers an empirical methodology for evaluating the development of production networks. It looks at the linkages between the flow of knowledge within the production network and the development of firm-endogenous capabilities, and applies this methodology to the Argentinean automotive...

The new economic scenario increases the importance of the "innovative capacity" of the agents as crucial competitive instrument in order to attain the differentiating element required by the competitive process. Innovative capacity refers to the agents' capability to transform general knowledge...