Innovation drivers in Ecuadorian manufacturing

Abstract

Purpose The purpose of this paper is to study which are the drivers of different types of innovations for manufacturing firms. The considered innovation types are product, process, organizational and marketing innovations. In addition, this study also aims to understand why most types of innovation (with the exception of organizational innovation) have decreased over time. Design/methodology/approach The two non-overlapping waves of the Ecuadorian National Innovation Activities Survey 2013 and 2015 (NIAS) are used. To identify the determinants of the different types of innovations and to check whether the decisions to innovate are correlated, a tetravariate probit model is used. Findings The results obtained point to some relevant differences in terms of the drivers of the different types of innovation. In addition, it is also evident that with the passage of time, certain problems that may be reducing the incentives to innovate have become more acute. Originality/value The study adds new empirical evidence to the literature on the role of investments in incorporated technology in innovation in developing countries. In particular, for Ecuadorian firms, the acquisition of incorporated technology in capital goods seems to be very relevant. This highlights the existence of a supply-driven innovation strategy. However, there is also room for innovation strategies driven by demand conditions.

A possible mechanism for partial crowding‐out of R&D subsidies in developing countries

“…This finding could even point to a potential improvement in the allocation of innovative efforts in developing countries, with a focus on capital investment. The notion that embodied technology in capital goods is significant for developing countries and can contribute to fostering future innovation is well‐supported by studies such as Navarro et al (2010), Dabla‐Norris et al (2012), Goedhuys and Veugelers (2012), and Rochina‐Barrachina & Rodríguez (2019). Furthermore, this idea is also evident in more recent papers.…”

“…As countries develop, firms' R&D investments capable of creating new technologies are expected to replace a more supply‐dominated process, which operates through the acquisition of available technology embodied in fixed capital (Goedhuys & Veugelers, 2012). In particular, for the Ecuadorian economy, it has been found that one of the drivers of firms' innovative outputs is investment in capital goods (Rochina‐Barrachina & Rodríguez, 2019). Therefore, if partial crowding‐out is accompanied by increased investment in capital goods by financially constrained firms, it could indicate a more effective allocation of funds towards innovation strategies commonly observed in developing countries, involving the assimilation of new technologies embedded in capital goods.…”

Modelo estructural de las competencias de innovación en Latinoamérica. Evidencia en México, Colombia y Bolivia

“…En cuanto a los resultados inferenciales, se encontró dentro el modelo estructural que la competencia interpersonal influye sobre la creación de redes de manera significativa y positiva (β = .668; t = 7.691; p < 0.001; Q 2 = .254). No obstante, la relación entre la competencia individual y la creación de redes no fue significativa estadísticamente hablando, según los resultados obtenidos mediante el programa SmartPLS 3 (Ringle et al, 2015).…”