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Complementarity of innovation policies in Brazilian industry: An econometric study

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  • Resende, Marcelo
  • Strube, Eduardo
  • Zeidan, Rodrigo

Abstract

The paper aims to assess discrete complementarities in innovation policies in the context of Brazilian industry in 2003. We focus on complementarity and substitutability tests for obstacles to innovation (in the present application, lack of: finance sources, skilled personnel, cooperation opportunities, and information on technology or markets). The application, based on the Brazilian innovation survey (PINTEC-IBGE, 2003. Pesquisa Industrial de Inovação Tecnológica 2003. Retrieved October 23, 2013, from http://www.ibge.gov.br/home/estatistica/economia/industria/pintec/2003/pintec2003.pdf), avoids micro-aggregation of the data and explicitly considers sampling weights in the econometric estimation. The analysis highlights the two phases of the innovation process in terms of the propensity and intensity of innovation. We find evidence that firms subject to international competition have higher propensity to innovate. We also present some evidence that foreign ownership may be a driver to the propensity of innovation when companies actually innovate in the host countries. The evidence, unlike previous results, is not totally clear-cut in terms of contrasts of the two phases. Nevertheless, we can detect some substitutability and complementarity for specific pairs of obstacles regarding the propensity to innovate, and some evidence of complementarities in obstacles when considering intensity of innovation. Evidence is suggestive and favors the adoption of more targeted incentive policies for innovation.

Suggested Citation

  • Resende, Marcelo & Strube, Eduardo & Zeidan, Rodrigo, 2014. "Complementarity of innovation policies in Brazilian industry: An econometric study," International Journal of Production Economics, Elsevier, vol. 158(C), pages 9-17.
    • Handle: RePEc:eee:proeco:v:158:y:2014:i:c:p:9-17
    DOI: 10.1016/j.ijpe.2014.07.009
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    Cited by:

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    2. Nestor Duch-Brown & Andrea de Panizza & Ibrahim Kholilul Rohman, 2016. "Innovation and productivity in a S&T intensive sector: the case of Information industries in Spain," JRC Research Reports JRC101847, Joint Research Centre.
    3. Blind, Knut & Krieger, Bastian & Pellens, Maikel, 2022. "The interplay between product innovation, publishing, patenting and developing standards," Research Policy, Elsevier, vol. 51(7).
    4. Latan, Hengky & Chiappetta Jabbour, Charbel Jose & Lopes de Sousa Jabbour, Ana Beatriz & de Camargo Fiorini, Paula & Foropon, Cyril, 2020. "Innovative efforts of ISO 9001-certified manufacturing firms: Evidence of links between determinants of innovation, continuous innovation and firm performance," International Journal of Production Economics, Elsevier, vol. 223(C).
    5. Danny Samson & Marianne Gloet & Prakash Singh, 2017. "Systematic Innovation Capability: Evidence From Case Studies And A Large Survey," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(07), pages 1-43, October.
    6. Ozusaglam, Serdal & Kesidou, Effie & Wong, Chee Yew, 2018. "Performance effects of complementarity between environmental management systems and environmental technologies," International Journal of Production Economics, Elsevier, vol. 197(C), pages 112-122.
    7. Zahler, Andrés & Goya, Daniel & Caamaño, Matías, 2022. "The primacy of demand and financial obstacles in hindering innovation," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    8. Barros, Henrique M., 2021. "Neither at the cutting edge nor in a patent-friendly environment: Appropriating the returns from innovation in a less developed economy," Research Policy, Elsevier, vol. 50(1).
    9. Jaureguy, Micaela Vidal & Bianchi, Carlos & Blanchard, Pablo, 2023. "Financial and knowledge barriers to innovation: Complementary and substitution effects on innovative effort," Research Policy, Elsevier, vol. 52(7).
    10. Doran, Justin, 2012. "Are different forms of innovation complements or substitutes?," MPRA Paper 44580, University Library of Munich, Germany.
    11. Basant, Rakesh, 2017. "Exploring Linkages between Innovation and public policy- challenges and Opportunities," IIMA Working Papers WP 2017-11-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    12. Rakesh Basant, 2018. "Exploring Linkages between Industrial Innovation and Public Policy: Challenges and Opportunities," Vikalpa: The Journal for Decision Makers, , vol. 43(2), pages 61-76, June.

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    More about this item

    Keywords

    Supermodularity; Complementarities; Innovation;
    All these keywords.

    JEL classification:

    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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