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...

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Main Authors:	Ayyagari, Meghana, Demirgüç-Kunt, Asli, Maksimovic, Vojislav
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	CAPACITY UTILIZATION COMMERCIAL BANKS COMPANY COMPETITORS CORPORATE GOVERNANCE CORPORATION CORPORATIONS DISCUSSION DISCUSSIONS EMPLOYMENT ENTREPRENEURS ENTREPRENEURSHIP EXTERNAL FINANCING FINANCIAL INSTITUTIONS FIRM GROWTH FIRM PERFORMANCE FIRM SIZE FIRMS FOREIGN COMPETITORS FOREIGN CURRENCY FOREIGN FIRMS FOREIGN NATIONALS FOREIGN OWNERSHIP FOREIGN PARTNER FOREIGN PARTNERS HUMAN CAPITAL IDEAS IDENTITY IMPORTANCE OF INNOVATION INCUMBENTS INDIVIDUAL FIRM INDIVIDUAL INDICATORS INNOVATION INNOVATION CAPABILITY INNOVATION INDICATORS INNOVATION POLICIES INNOVATION PROCESS INNOVATIONS INNOVATIVE ACTIVITIES INNOVATIVE ACTIVITY INNOVATIVE FIRMS INVESTMENT CLIMATE INVESTMENT DECISIONS INVESTMENT EXPENDITURES INVESTMENT FUND INVESTMENT RATE INVESTOR PROTECTION JOINT VENTURES LEASING LEASING ARRANGEMENT LICENSING LICENSING AGREEMENT MINORITY SHAREHOLDERS NEW PRODUCT NEW PRODUCTS NEW TECHNOLOGIES NEW TECHNOLOGY ORGANIZATIONAL FORMS ORGANIZATIONAL STRUCTURE OWNERSHIP STRUCTURE PRIVATE ENTERPRISES PRODUCT INNOVATION PRODUCTION PROCESSES PRODUCTIVITY PROFITABILITY RETAINED EARNINGS SHAREHOLDERS SMALL FIRMS STATE ENTERPRISES STATE OWNED ENTERPRISES STRUCTURES SUPPLIERS THINKING TRADE CREDIT VENTURE CAPITAL WORK EXPERIENCE WORKFORCE
Online Access:	http://documents.worldbank.org/curated/en/2007/03/7435941/firm-innovation-emerging-markets-roles-governance-finance http://hdl.handle.net/10986/7188

id	okr-10986-7188
recordtype	oai_dc
spelling	okr-10986-71882021-04-23T14:02:33Z Firm Innovation in Emerging Markets Ayyagari, Meghana Demirgüç-Kunt, Asli Maksimovic, Vojislav CAPACITY UTILIZATION COMMERCIAL BANKS COMPANY COMPETITORS CORPORATE GOVERNANCE CORPORATION CORPORATIONS DISCUSSION DISCUSSIONS EMPLOYMENT ENTREPRENEURS ENTREPRENEURSHIP EXTERNAL FINANCING FINANCIAL INSTITUTIONS FIRM GROWTH FIRM PERFORMANCE FIRM SIZE FIRMS FOREIGN COMPETITORS FOREIGN CURRENCY FOREIGN FIRMS FOREIGN NATIONALS FOREIGN OWNERSHIP FOREIGN PARTNER FOREIGN PARTNERS HUMAN CAPITAL IDEAS IDENTITY IMPORTANCE OF INNOVATION INCUMBENTS INDIVIDUAL FIRM INDIVIDUAL INDICATORS INNOVATION INNOVATION CAPABILITY INNOVATION INDICATORS INNOVATION POLICIES INNOVATION PROCESS INNOVATIONS INNOVATIVE ACTIVITIES INNOVATIVE ACTIVITY INNOVATIVE FIRMS INVESTMENT CLIMATE INVESTMENT DECISIONS INVESTMENT EXPENDITURES INVESTMENT FUND INVESTMENT RATE INVESTOR PROTECTION JOINT VENTURES LEASING LEASING ARRANGEMENT LICENSING LICENSING AGREEMENT MINORITY SHAREHOLDERS NEW PRODUCT NEW PRODUCTS NEW TECHNOLOGIES NEW TECHNOLOGY ORGANIZATIONAL FORMS ORGANIZATIONAL STRUCTURE OWNERSHIP STRUCTURE PRIVATE ENTERPRISES PRODUCT INNOVATION PRODUCTION PROCESSES PRODUCTIVITY PROFITABILITY RETAINED EARNINGS SHAREHOLDERS SMALL FIRMS STATE ENTERPRISES STATE OWNED ENTERPRISES STRUCTURES SUPPLIERS THINKING TRADE CREDIT VENTURE CAPITAL WORK EXPERIENCE WORKFORCE 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. 2012-06-05T20:42:06Z 2012-06-05T20:42:06Z 2007-03 http://documents.worldbank.org/curated/en/2007/03/7435941/firm-innovation-emerging-markets-roles-governance-finance http://hdl.handle.net/10986/7188 English Policy Research Working Paper; No. 4157 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	CAPACITY UTILIZATION COMMERCIAL BANKS COMPANY COMPETITORS CORPORATE GOVERNANCE CORPORATION CORPORATIONS DISCUSSION DISCUSSIONS EMPLOYMENT ENTREPRENEURS ENTREPRENEURSHIP EXTERNAL FINANCING FINANCIAL INSTITUTIONS FIRM GROWTH FIRM PERFORMANCE FIRM SIZE FIRMS FOREIGN COMPETITORS FOREIGN CURRENCY FOREIGN FIRMS FOREIGN NATIONALS FOREIGN OWNERSHIP FOREIGN PARTNER FOREIGN PARTNERS HUMAN CAPITAL IDEAS IDENTITY IMPORTANCE OF INNOVATION INCUMBENTS INDIVIDUAL FIRM INDIVIDUAL INDICATORS INNOVATION INNOVATION CAPABILITY INNOVATION INDICATORS INNOVATION POLICIES INNOVATION PROCESS INNOVATIONS INNOVATIVE ACTIVITIES INNOVATIVE ACTIVITY INNOVATIVE FIRMS INVESTMENT CLIMATE INVESTMENT DECISIONS INVESTMENT EXPENDITURES INVESTMENT FUND INVESTMENT RATE INVESTOR PROTECTION JOINT VENTURES LEASING LEASING ARRANGEMENT LICENSING LICENSING AGREEMENT MINORITY SHAREHOLDERS NEW PRODUCT NEW PRODUCTS NEW TECHNOLOGIES NEW TECHNOLOGY ORGANIZATIONAL FORMS ORGANIZATIONAL STRUCTURE OWNERSHIP STRUCTURE PRIVATE ENTERPRISES PRODUCT INNOVATION PRODUCTION PROCESSES PRODUCTIVITY PROFITABILITY RETAINED EARNINGS SHAREHOLDERS SMALL FIRMS STATE ENTERPRISES STATE OWNED ENTERPRISES STRUCTURES SUPPLIERS THINKING TRADE CREDIT VENTURE CAPITAL WORK EXPERIENCE WORKFORCE
spellingShingle	CAPACITY UTILIZATION COMMERCIAL BANKS COMPANY COMPETITORS CORPORATE GOVERNANCE CORPORATION CORPORATIONS DISCUSSION DISCUSSIONS EMPLOYMENT ENTREPRENEURS ENTREPRENEURSHIP EXTERNAL FINANCING FINANCIAL INSTITUTIONS FIRM GROWTH FIRM PERFORMANCE FIRM SIZE FIRMS FOREIGN COMPETITORS FOREIGN CURRENCY FOREIGN FIRMS FOREIGN NATIONALS FOREIGN OWNERSHIP FOREIGN PARTNER FOREIGN PARTNERS HUMAN CAPITAL IDEAS IDENTITY IMPORTANCE OF INNOVATION INCUMBENTS INDIVIDUAL FIRM INDIVIDUAL INDICATORS INNOVATION INNOVATION CAPABILITY INNOVATION INDICATORS INNOVATION POLICIES INNOVATION PROCESS INNOVATIONS INNOVATIVE ACTIVITIES INNOVATIVE ACTIVITY INNOVATIVE FIRMS INVESTMENT CLIMATE INVESTMENT DECISIONS INVESTMENT EXPENDITURES INVESTMENT FUND INVESTMENT RATE INVESTOR PROTECTION JOINT VENTURES LEASING LEASING ARRANGEMENT LICENSING LICENSING AGREEMENT MINORITY SHAREHOLDERS NEW PRODUCT NEW PRODUCTS NEW TECHNOLOGIES NEW TECHNOLOGY ORGANIZATIONAL FORMS ORGANIZATIONAL STRUCTURE OWNERSHIP STRUCTURE PRIVATE ENTERPRISES PRODUCT INNOVATION PRODUCTION PROCESSES PRODUCTIVITY PROFITABILITY RETAINED EARNINGS SHAREHOLDERS SMALL FIRMS STATE ENTERPRISES STATE OWNED ENTERPRISES STRUCTURES SUPPLIERS THINKING TRADE CREDIT VENTURE CAPITAL WORK EXPERIENCE WORKFORCE Ayyagari, Meghana Demirgüç-Kunt, Asli Maksimovic, Vojislav Firm Innovation in Emerging Markets
relation	Policy Research Working Paper; No. 4157
description	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.
format	Publications & Research :: Policy Research Working Paper
author	Ayyagari, Meghana Demirgüç-Kunt, Asli Maksimovic, Vojislav
author_facet	Ayyagari, Meghana Demirgüç-Kunt, Asli Maksimovic, Vojislav
author_sort	Ayyagari, Meghana
title	Firm Innovation in Emerging Markets
title_short	Firm Innovation in Emerging Markets
title_full	Firm Innovation in Emerging Markets
title_fullStr	Firm Innovation in Emerging Markets
title_full_unstemmed	Firm Innovation in Emerging Markets
title_sort	firm innovation in emerging markets
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2007/03/7435941/firm-innovation-emerging-markets-roles-governance-finance http://hdl.handle.net/10986/7188
_version_	1764401584550182912

Firm Innovation in Emerging Markets

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