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Determinants of process innovation introductions: Evidence from 115 developing countries

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  • Rajeev K. Goel
  • Michael A. Nelson

Abstract

This paper examines determinants of process innovation introductions across 115 (mostly) developing countries. Empirical research on process innovations lags behind product innovations. Accounting for firm characteristics, R&D, regulations and taxes, and corruption, results show that sole proprietors and R&D†performing firms were more likely to introduce innovations, whereas greater prosperity made them less likely to do so. Corruption had a greasing effect, whereas firms in island nations were less likely to introduce, ceteris paribus. Effects of regulations and taxes and other firm characteristics were largely insignificant. Finally, some differences existed across manufacturing and service industries and across prevalence of innovation introductions.

Suggested Citation

  • Rajeev K. Goel & Michael A. Nelson, 2018. "Determinants of process innovation introductions: Evidence from 115 developing countries," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 39(5), pages 515-525, July.
    • Handle: RePEc:wly:mgtdec:v:39:y:2018:i:5:p:515-525
    DOI: 10.1002/mde.2922
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    Cited by:

    1. Albert N. Link & Rashedur Rahman Sardar, 2023. "R&D and regional competitiveness: a study of global entrepreneurial firms," International Entrepreneurship and Management Journal, Springer, vol. 19(1), pages 369-378, March.
    2. Dirk Dohse & Rajeev K. Goel & Michael A. Nelson, 2019. "Female owners versus female managers: Who is better at introducing innovations?," The Journal of Technology Transfer, Springer, vol. 44(2), pages 520-539, April.
    3. Rajeev K. Goel & Michael A. Nelson, 2021. "How do firms use innovations to hedge against economic and political uncertainty? Evidence from a large sample of nations," The Journal of Technology Transfer, Springer, vol. 46(2), pages 407-430, April.
    4. Gaygysyz Ashyrov & Helery Tasane, 2024. "The roles of foreign and domestic ownership in the corruption–firm innovation nexus," Bulletin of Economic Research, Wiley Blackwell, vol. 76(1), pages 167-202, January.
    5. Goel, Rajeev K. & Nelson, Michael A., 2021. "Capacity utilization in emerging economy firms: Some new insights related to the role of infrastructure and institutions," The Quarterly Review of Economics and Finance, Elsevier, vol. 79(C), pages 97-106.
    6. Syed Zulfiqar Ali Shah & Muhammad Anwar & Ch. Mazhar Hussain, 2021. "Top managers' attributes, innovation, and the participation in China–Pakistan Economic Corridor: A study of energy sector small and medium‐sized enterprises," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 385-406, March.
    7. Wu, Jiamei & Chen, Zhibin & Guo, Chong, 2022. "How does anti-corruption affect green innovation? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 405-424.
    8. Haddoud, Mohamed Yacine & Kock, Ned & Onjewu, Adah-Kole Emmanuel & Jafari-Sadeghi, Vahid & Jones, Paul, 2023. "Technology, innovation and SMEs' export intensity: Evidence from Morocco," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    9. Lee, Chien-Chiang & Wang, Chih-Wei & Ho, Shan-Ju, 2020. "Country governance, corruption, and the likelihood of firms’ innovation," Economic Modelling, Elsevier, vol. 92(C), pages 326-338.
    10. Herlina Maria Grace & Fitrianastasya Feren & Ratih Silvia & Amandha Maria, 2024. "Unlocking Innovation from Within: The Power of Tacit Knowledge and Change Adaptability in Indonesian Internal Organisational Innovation Processes," Economics and Culture, Sciendo, vol. 21(1), pages 10-28.
    11. Albert N. Link, 2021. "Investments in R&D and innovative behavior: an exploratory cross-country study," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 731-739, June.
    12. Genlong Guo & Shoude Li, 2023. "A dynamic analysis of a monopolist's efforts for improving product quality and process innovation with reference price effects under linear demand," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2328-2345, June.
    13. Rajeev K. Goel & Ummad Mazhar & Rati Ram, 2022. "Informal competition and firm performance: Impacts on input‐ versus output performance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(2), pages 418-430, March.
    14. Rajeev K. Goel & Michael A. Nelson, 2022. "Employment effects of R&D and process innovation: evidence from small and medium-sized firms in emerging markets," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(1), pages 97-123, March.
    15. German Blanco & Rajeev K. Goel, 2023. "Do weak institutions undermine global innovation production efficiency?," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1813-1838, October.
    16. Goel, Rajeev K. & Nelson, Michael A., 2020. "Do external quality certifications improve firms’ conduct? International evidence from manufacturing and service industries," The Quarterly Review of Economics and Finance, Elsevier, vol. 76(C), pages 97-104.
    17. Rajeev K. Goel & James W. Saunoris, 2020. "Design versus utility innovation: Is corruption sanding or greasing the wheels of innovation?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(5), pages 848-860, July.
    18. Fengxiu Zhou & Chien-Chiang Lee, 2023. "Political uncertainty and innovation of export enterprises: international evidence for developing countries," Economic Change and Restructuring, Springer, vol. 56(6), pages 4371-4400, December.
    19. Thi Phuong Thao Nguyen & Phuc Hieu Nghiem & Thi Thu Hong Vo, 2022. "Building Capacity for Innovation - Evidence From Vietnam," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 3(4), pages 1-6.

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