Firm Innovation in Africa and Latin America: Heterogeneity and Country Context

Eva Paus (), Michael Robinson () and Fiona Tregenna ()
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Eva Paus: Economics on the Ford Foundation at Mount Holyoke College. Fiona Tregenna is the Email:
Michael Robinson: Economics at Mount Holyoke College
Fiona Tregenna: DSI/NRF South African Research Chair in Industrial Development and University of Johannesburg.

No 2022-02, SARChI-ID Working Papers from SARChI Industrial Development (SARChI-ID), University of Johannesburg (UJ)

Abstract: In this paper, we analyse the drivers of firm innovation in 35 African and Latin American countries. We investigate how firm-level capabilities and national country characteristics affect firm innovation activities and innovation outputs. Using data from the World Bank Enterprise Surveys, we analyse the factors driving firm-level innovation by distinguishing two stages in the innovation process: firm engagement with innovation inputs and the translation of innovation inputs into innovation outputs. The paper provides empirical support for the importance of country level macro and institutional characteristics, in addition to firm level capabilities, across a large number of countries in determining firm level innovation. We demonstrate that capital investment and training are just as important innovation activities as R&D spending in developing economies. We highlight the heterogeneity in firm innovation across firm size, country and firm-level characteristics, and economic sectors.

Keywords: innovation activities; firm capabilities; macro context; institutions; Africa; Latin America (search for similar items in EconPapers)
JEL-codes: O14 O30 O31 O33 O54 O55 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2022-01, Revised 2022-01
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Persistent link: https://EconPapers.repec.org/RePEc:adz:wpaper:202202

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