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

Author

Listed:
  • 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.)

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.

Suggested Citation

  • Eva Paus & Michael Robinson & Fiona Tregenna, 2022. "Firm Innovation in Africa and Latin America: Heterogeneity and Country Context," SARChI-ID Working Papers 2022-02, SARChI Industrial Development (SARChI-ID), University of Johannesburg (UJ), revised Jan 2022.
    • Handle: RePEc:adz:wpaper:202202
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    Keywords

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    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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