Does Participation in Business Associations Affect Innovation?

Felipe Aguilar and Roberto Alvarez

Working Papers Central Bank of Chile from Central Bank of Chile

Abstract: In this paper, we use data for more than 5,000 Chilean companies to investigate whether participation in business association increases the probability of R&D investment. Dealing with the endogeneity of participation through a bivariate Probit model with an exclusion variable that captures the trust environment among firms, we find that this probability increases by about 27%. This effect is heterogeneous across firms. Participation increases the probability of R&D investment by 30.8% for SMEs and by 43.9% for those companies with severe financial constraints. Our evidence is consistent with the idea that associativity may help SMEs to close the innovation gap and/or to alleviate financial problems.

Date: 2025-12
New Economics Papers: this item is included in nep-sbm
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.bcentral.cl/documents/33528/133326/Doc ... afd4?t=1765986692137 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:chb:bcchwp:1064

Access Statistics for this paper

More papers in Working Papers Central Bank of Chile from Central Bank of Chile Contact information at EDIRC.
Bibliographic data for series maintained by Sebastian Antinao ().