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The global crisis and firms’ investments in innovation

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  • Paunov, Caroline

Abstract

The longer term impact of the global crisis depends on how business innovation capacities were affected. Understanding which firms suffered most is essential for developing adequate post-crisis recovery policies. This paper provides first quantitative evidence on these questions based on an original firm-level dataset for eight Latin American countries in 2008–2009. We find the crisis led many firms to stop ongoing innovation projects. Probit regression results show that firms with access to public funding were less likely to abandon these investments. Younger firms and businesses supplying foreign multinationals or suffering export shocks were more likely to do so.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 41 (2012)
Issue (Month): 1 ()
Pages: 24-35

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Handle: RePEc:eee:respol:v:41:y:2012:i:1:p:24-35

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Web page: http://www.elsevier.com/locate/respol

Related research

Keywords: Global crisis; Innovation investments; Firm-level analysis; Latin America;

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References

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Citations

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Cited by:
  1. Grigorii V. Teplykh, 2014. "Innovations and productivity: the shift during the 2008 crisis," HSE Working papers WP BRP 23/STI/2014, National Research University Higher School of Economics.
  2. Hud, Martin & Hussinger, Katrin, 2014. "The impact of R&D subsidies during the crisis," ZEW Discussion Papers 14-024, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Dachs, Bernhard & Ebersberger, Bernd & Kinkel, Steffen & Som, Oliver, 2014. "The effects of production offshoring on R&D and innovation in the home country," Discussion Papers "Innovation Systems and Policy Analysis" 39, Fraunhofer Institute for Systems and Innovation Research (ISI).
  4. Archibugi, Daniele & Filippetti, Andrea & Frenz, Marion, 2013. "Economic crisis and innovation: Is destruction prevailing over accumulation?," Research Policy, Elsevier, vol. 42(2), pages 303-314.
  5. Makkonen, Teemu, 2013. "Government science and technology budgets in times of crisis," Research Policy, Elsevier, vol. 42(3), pages 817-822.
  6. Arif Orcun Sakarya, 2014. "Examination of Innovation Sources and Cooperation Alternatives for Turkish Firms," Eurasian Journal of Business and Management, Eurasian Publications, vol. 2(1), pages 36-45.
  7. Waters, James, 2013. "The Sarbanes-Oxley Act, industrial innovation, and real option creation," MPRA Paper 49173, University Library of Munich, Germany.
  8. Fernandes, Ana M. & Paunov, Caroline, 2012. "The risks of innovation : are innovating firms less likely to die ?," Policy Research Working Paper Series 6103, The World Bank.
  9. Margareta C. RUSU, 2013. "Eco-innovation and its Contribution to Sustainable Development and Competitiveness," Network Intelligence Studies, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 2, pages 127-135, October.
  10. Daniele Archibugi & Andrea Filippetti & Marion Frenz, 2012. "Economic crisis and innovation: is destruction prevailing over accumulation?," Working Papers 6, Birkbeck Centre for Innovation Management Research, revised Apr 2012.

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