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The Role of Obstacles to Innovation on Innovative Activities: an Empirical Analysis

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  • Andrés Zahler
  • Daniel Goya
  • Matías Caamaño

Abstract

We study the effect of different types of barriers to innovation (financial, demand, knowledge, market, cooperation, and regulatory barriers) on firm level innovation inputs and outputs. Using a pooled sample of three Chilean innovation surveys, based on an instrumental variables approach, we find that the probability of generating innovation outcomes is significantly reduced by demand and financial barriers. Regarding inputs for innovation, we find a clear negative relationship between financial and demand obstacles and the propensity to incur (non-R&D) innovation expenditures, but not with its intensity. We also provide evidence of heterogeneous effects across sectors, finding that knowledge obstacles are relevant for manufacturing and market structure obstacles for services, while demand and financial obstacles appear to matter across the board.

Suggested Citation

  • Andrés Zahler & Daniel Goya & Matías Caamaño, 2018. "The Role of Obstacles to Innovation on Innovative Activities: an Empirical Analysis," Working Papers 2018-02, Escuela de Negocios y Economía, Pontificia Universidad Católica de Valparaíso.
    • Handle: RePEc:ucv:wpaper:2018-02
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    Cited by:

    1. Ortiz, Rodrigo & Fernandez, Viviana, 2022. "Business perception of obstacles to innovate: Evidence from Chile with pseudo-panel data analysis," Research in International Business and Finance, Elsevier, vol. 59(C).
    2. Vargas, F. & Guillard, Charlotte & Salazar, Monica & Crespi, G.A., 2022. "Harmonized Latin American innovation Surveys Database (LAIS)," MERIT Working Papers 2022-020, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    More about this item

    Keywords

    Financial and non-financial barriers to innovation; sectoral heterogeneity in innovation barriers; potential innovators; instrumental variables.;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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