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

Grace Carolina Guevara Rosero (), Jonathan Quijia, José Ramírez () and Oscar Acero
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Grace Carolina Guevara Rosero: Department of Quantitative Economics, Escuela Politécnica Nacional. Ecuador
Authors registered in the RePEc Author Service: Carolina Guevara-Rosero

INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, 2022, issue 52, 81-102

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.

Keywords: Productivity; innovation; firms; Latin America (search for similar items in EconPapers)
JEL-codes: D24 O12 O54 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ris:invreg:0479

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