Firm Innovation in Emerging Markets
The authors investigate the determinants of firm innovation in over 19,000 firms across 47 developing economies. They define the innovation process broadly, to include not only core innovation such as the introduction of new products and new techno...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2007/03/7435941/firm-innovation-emerging-markets-roles-governance-finance http://hdl.handle.net/10986/7188 |
| Summary: | The authors investigate the determinants
of firm innovation in over 19,000 firms across 47 developing
economies. They define the innovation process broadly, to
include not only core innovation such as the introduction of
new products and new technologies, but also other types of
activities that promote knowledge transfers and adapt
production processes. The authors find that more innovative
firms are large exporting firms characterized by private
ownership, highly educated managers with mid-level
managerial experience, and access to external finance. In
contrast, firms that do not innovate much are typically
state-owned firms without foreign competitors. The identity
of the controlling shareholder seems to be particularly
important for core innovation, with those private firms
whose controlling shareholder is a financial institution
being the least innovative. While the use of external
finance is associated with greater innovation by all private
firms, it does not make state-owned firms more innovative.
Financing from foreign banks is associated with higher
levels of innovation compared with financing from domestic banks. |
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