Managing Innovation under Competitive Pressure from Informal Producers Managing Innovation under Competitive Pressuire from Informal Producers

Pedro Mendi and Rodrigo Costamagna ()
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Rodrigo Costamagna: INALDE Business School, Universidad de la Sabana

No 10/2015, NCID Working Papers from Navarra Center for International Development, University of Navarra

Abstract: This paper studies the impact on innovation of competition against firms in the informal sector. Using the World Bank’s Enterprise Survey data from a sample of African and Latin American countries, we find that the marginal impact of informality on innovation by formal firms decreases with the intensity of competitive pressure from informal firms, consistent with an inverted-U relationship between propensity to innovate and competitive pressure from firms in the informal sector.

Pages: 36 pages
Date: 2015-11
New Economics Papers: this item is included in nep-com, nep-cse, nep-ino, nep-iue, nep-sbm and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:nva:unnvaa:wp10-2015

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