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Innovative Activity in the Caribbean: Drivers, Benefits, and Obstacles

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  • Preeya Mohan
  • Eric Strobl
  • Patrick Watson

Abstract

We investigate the determinants of innovation and the benefits from it in making firms more productive in the Caribbean. To this end we use a rich firm level dataset covering 14 different countries and various non-parametric, semi- parametric and parametric statistical tools. Our results show that, while firms may be productive for many reasons, there are substantial productivity benefits resulting from investment in innovation. Moreover, these benefits do not appear to be particularly low compared to what prevails in other developing countries. However, there is some indication that factors that would normally encourage innovation investment, such as patent protection, public subsidies, or cooperation among innovators, may not bear fruit.

Suggested Citation

  • Preeya Mohan & Eric Strobl & Patrick Watson, 2014. "Innovative Activity in the Caribbean: Drivers, Benefits, and Obstacles," Working Papers 2014-595, Department of Research, Ipag Business School.
    • Handle: RePEc:ipg:wpaper:2014-595
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    References listed on IDEAS

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    5. Daniel Lederman & Julián Messina & Samuel Pienknagura & Jamele Rigolini, 2014. "Latin American Entrepreneurs : Many Firms but Little Innovation [El emprendimiento en América Latina : muchas empresas y poca innovación]," World Bank Publications - Books, The World Bank Group, number 16457.
    6. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    7. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    8. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 17-45, National Bureau of Economic Research, Inc.
    9. Freeman, Chris, 1994. "The Economics of Technical Change," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 18(5), pages 463-514, October.
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    12. repec:crs:wpaper:9833 is not listed on IDEAS
    13. Chudnovsky, Daniel & Lopez, Andres & Pupato, German, 2006. "Innovation and productivity in developing countries: A study of Argentine manufacturing firms' behavior (1992-2001)," Research Policy, Elsevier, vol. 35(2), pages 266-288, March.
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    Cited by:

    1. Grazzi, Matteo & Pietrobelli, Carlo & Szirmai, Adam, 2015. "The performance of firms in Latin America and the Caribbean: Microeconomic factors and the role of innovation," MERIT Working Papers 2015-041, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Hallonsten, Jan Simon & Ziesemer, Thomas, 2016. "A semi-endogenous growth model for developing countries with public factors, imported capital goods, and limited export demand," MERIT Working Papers 2016-004, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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