Regional institutional quality and firm-level innovation: a case of selected south asian economies

Muhammad Zeeshan Younas ()
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Muhammad Zeeshan Younas: Quaid-I-Azam University

Quality & Quantity: International Journal of Methodology, 2023, vol. 57, issue 1, No 28, 615-643

Abstract: Abstract Using rich micro-level data on manufacturing firms in four South Asian economies, this paper examines how regional institutional quality (RIQ) influences the relationship between firm-level resources and technological innovation outputs. Our research hypothesis postulates that the impact of firm-level resources on innovation is moderated by the institutional environment within which the firm operates. To test our research hypothesis, a clustered robust standard errors logistic model is used, while the multi-level estimation technique is used for robustness analysis. Findings conclude that how much a firm can extract value from the firm-level resources to produce innovative products is dependent on the institutional quality, not only on the national level but regional level as well. Moreover, the internal R&D, employees education, and skilled labor force have positive impact on the product innovation when they interact with the regional institutional quality. The results have applied implications for policymakers in the area of regional-level governance and innovation.

Keywords: Regional Institutional Quality; Firm-Level Innovation; Firm-Level Resources; Technological Innovation; South Asia (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s11135-022-01381-1

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