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Do the novelty and type of innovation affect the performance of firms? A case study for Ecuador

Author

Listed:
  • Guevara Rosero, Grace Carolina

    (Department of Quantitative Economics, Escuela Politécnica Nacional. Ecuador)

  • Quijia Pillajo , Jonathan Rafael

    (Dirección de Estadísticas Económicas. Instituto Nacional de Estadística y Censos. Ecuador.)

  • Ramírez Álvarez, José Fernando

    (Department of Quantitative Economics, Escuela Politécnica Nacional. Escuela Politécnica Nacional. Ecuador)

  • Acero Almachi, Oscar Omar

    (Grupasa Grupo Papelero. Ecuador)

Abstract

Since innovation is a productivity driver that leads to economic growth, the case of a developing country, Ecuador, is studied. The aim of this paper is to measure the causal effect of innovation on firms’ productivity by distinguishing the type of innovation, namely, in products, in process, in organization and in marketing. To do so, an endogenous switching model is estimated using the Science, Technology and Innovation Activity Survey. The results indicate that the productivity loss is higher for innovating firms if they stop innovating than the productivity gain of non-innovating firms if they engage in innovation. The difference between the productivity losses and gains depends on the type of innovation.

Suggested Citation

  • Guevara Rosero, Grace Carolina & Quijia Pillajo , Jonathan Rafael & Ramírez Álvarez, José Fernando & Acero Almachi, Oscar Omar, 2022. "Do the novelty and type of innovation affect the performance of firms? A case study for Ecuador," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 52, pages 81-102.
    • Handle: RePEc:ris:invreg:0479
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    More about this item

    Keywords

    Productivity; innovation; firms; Latin America;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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