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Institutions, resources and innovation in East Africa: A firm level approach

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  • Barasa, Laura
  • Knoben, Joris
  • Vermeulen, Patrick
  • Kimuyu, Peter
  • Kinyanjui, Bethuel

Abstract

This study examines how firm-level resources interact with regional institutional quality to explain innovation in East Africa. We hypothesize that the institutional environment within which the firm operates moderates the effect of firm-level resources on innovative output. We examine the moderating role of institutions with regards to the transformation of firm-level resources including internal research and development, human capital and managerial experience into innovative output using firm-level data from the World Bank Enterprise Survey and the Innovation Follow-up Survey for three countries in East Africa including Kenya, Tanzania and Uganda. We test our hypotheses using a clustered robust standard errors logistic model. We find that the effects of firm-level resources vary depending on the institutional environment and that regional institutional quality positively moderates the effects of the firm-level resources.

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  • Barasa, Laura & Knoben, Joris & Vermeulen, Patrick & Kimuyu, Peter & Kinyanjui, Bethuel, 2017. "Institutions, resources and innovation in East Africa: A firm level approach," Research Policy, Elsevier, vol. 46(1), pages 280-291.
    • Handle: RePEc:eee:respol:v:46:y:2017:i:1:p:280-291
    DOI: 10.1016/j.respol.2016.11.008
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