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Foreign Trade, Education, And Innovative Performance: A Multilevel Analysis

Author

Listed:
  • Ahmet Faruk Aysan

    (Hamad Bin Khalifa University)

  • Luis Carlos Castillo-Téllez

    (Istanbul University)

  • Dilek Demirbas

    (Istanbul University)

  • Mustafa Disli

    (Hamad Bin Khalifa University)

Abstract

This study analyses the innovative performance of 5,273 companies across 64 different economic sectors and 32 different regions in Colombia. We assess the effects of education and open economy variables on the innovative performance of firms by analyzing firm, sectoral, and regional level determinants. The study takes the multilevel approach of the innovation process considering the structure and behavior of innovation systems in developing countries. We furthermore focus on technology transfer from foreign trade and the role of education in the process of innovation. We find that education and open economy variables have a significant relationship with innovation performance at the firm and regional levels. We finally conclude that Colombia has a fragmented innovation system with a weak institutional structure, and low interaction between policymakers, industry, universities, research centers.

Suggested Citation

  • Ahmet Faruk Aysan & Luis Carlos Castillo-Téllez & Dilek Demirbas & Mustafa Disli, 2021. "Foreign Trade, Education, And Innovative Performance: A Multilevel Analysis," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 24(3), pages 413-440, September.
    • Handle: RePEc:idn:journl:v:24:y:2021:i:3e:p:413-440
    DOI: https://doi.org/10.21098/bemp.v24i3.1543
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    More about this item

    Keywords

    Multilevel approach; Innovative performance; Open economy variables; Innovation systems; Multilevel regression models; Developmentean Sovereign debt crisis;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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