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Firm innovation in Africa and Latin America: Heterogeneity and country context
[Technological and non-technological innovation and productivity in services vis a vis manufacturing in Uruguay]

Author

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  • Eva Paus
  • Michael Robinson
  • Fiona Tregenna

Abstract

In this paper, we analyze the drivers of firm innovation in 35 African and Latin American countries. We investigate how firm-level capabilities and national country characteristics affect firm innovation activities and innovation outputs. Using data from the World Bank Enterprise Surveys, we analyze the factors driving firm-level innovation distinguishing two stages in the innovation process: firm engagement with innovation inputs and the translation of innovation inputs into innovation outputs. The paper provides empirical support for the importance of country-level macro and institutional characteristics, in addition to firm-level capabilities, across a large number of countries in determining firm-level innovation. We demonstrate that capital investment and training are just as important innovation activities as research and development spending in developing economies. We highlight the heterogeneity in firm innovation across firm size, country- and firm-level characteristics, and economic sectors.

Suggested Citation

  • Eva Paus & Michael Robinson & Fiona Tregenna, 2022. "Firm innovation in Africa and Latin America: Heterogeneity and country context [Technological and non-technological innovation and productivity in services vis a vis manufacturing in Uruguay]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(2), pages 338-357.
    • Handle: RePEc:oup:indcch:v:31:y:2022:i:2:p:338-357.
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    File URL: http://hdl.handle.net/10.1093/icc/dtac006
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    Citations

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    Cited by:

    1. Saša Petković & Jelica Rastoka & Dragana Radicic, 2023. "Impact of Innovation and Exports on Productivity: Are There Complementary Effects?," Sustainability, MDPI, vol. 15(9), pages 1-22, April.
    2. Penny Bamber & Karina Fernandez-Stark & Oswaldo Molina, 2024. "Innovation and competitiveness in the copper-mining GVC: developing local suppliers in Peru," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 33(4), pages 940-964.
    3. Eva Paus & Mike Robinson, 2024. "The Challenge of Productivity-Based Development: Innovation Gaps and Economic Structure in Latin America," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(2), pages 277-305, April.
    4. Torreggiani, Sofia & Andreoni, Antonio, 2023. "Rising to the challenge or perish? Chinese import penetration and its impact on growth dynamics of manufacturing firms in South Africa," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 199-212.

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