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Regional characteristics and the decision to innovate in a developing country: A multilevel analysis of Ecuadorian firms

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  • Fernando Bruna
  • Juan Fernández‐Sastre

Abstract

This is the first study that uses multilevel modelling to analyse regional influence on the decision to invest in innovation activities of firms in a single developing country, Ecuador. Our results indicate that the decision to invest in R&D and in other innovation activities are conditioned by the region in which the firm is located. Regional loan volume, orientation towards knowledge exploitation and intra‐regional‐sectorial R&D spillovers are positively associated with both types of innovation activities, while regional levels of co‐operation and inter‐regional R&D spillovers are only positively associated with the probability of investing in other innovation activities. Este es el primer estudio que utiliza la modelización multinivel para analizar la influencia regional en la decisión de invertir en las actividades de innovación de las empresas de un solo país en desarrollo, Ecuador. Los resultados indican que la decisión de invertir en I+D y en otras actividades de innovación está condicionada por la región en la que se encuentra la empresa. El volumen de préstamos regionales, la orientación hacia la explotación del conocimiento y los spillovers de la I+D intrarregional‐sectorial están asociados positivamente con ambos tipos de actividades de innovación, mientras que los niveles regionales de cooperación y los efectos indirectos de la I+D interregional sólo están asociados positivamente con la probabilidad de invertir en otras actividades de innovación. 本稿は、単一の開発途上国であるエクアドルにおける企業のイノベーション活動への投資の意思決定に対する地域の影響を、マルチレベルモデリングを用いて分析した最初の研究報告である。結果から、研究開発及びその他のイノベーション活動への投資の意思決定は、どの地域に企業が立地しているかに左右されることが示される。地域の融資額、知識活用指向、及び地域内の研究開発スピルオーバーは、研究開発とその他のイノベーション活動の両方と正の関連性があるが、地域レベルの業務提携や地域間の研究開発スピルオーバーは、その他のイノベーション活動への投資の可能性と正の関連性があるだけである。

Suggested Citation

  • Fernando Bruna & Juan Fernández‐Sastre, 2021. "Regional characteristics and the decision to innovate in a developing country: A multilevel analysis of Ecuadorian firms," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1337-1354, December.
    • Handle: RePEc:bla:presci:v:100:y:2021:i:6:p:1337-1354
    DOI: 10.1111/pirs.12632
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