The effects of developing-countries’ innovation support programs: evidence from Ecuador

Abstract

This paper evaluates the impact of Ecuadorian innovation support programs, which are intended to enhance firms' technological and managerial capabilities, on firms' innovative behavior and performance. In order to estimate the causal effects, we employ different Propensity Score Matching procedures. Results indicate that participating in a program increases firms' internal R&D and innovation effort, the qualification of the workforce, the likelihood of introducing product, process and organizational innovations and the probability of establishing linkages with research partners. However, participants do not show greater external R&D intensity or a higher propensity to patent, nor are they more likely to cooperate with suppliers, customer or competitors.

Cooperation for innovation in developing countries and its effects: evidence from Ecuador

“…However, in developing countries, R&D cooperation is only a fringe phenomenon, although most innovative firms are cooperating in other innovation activities such as engineering and design, training, technical assistance, product testing and above all in obtaining information. Firms in developing countries are mainly collaborating in these activities as they do not have sufficient technological capabilities to perform R&D activities (Fernández-Sastre and Martín-Mayoral, 2016). Nevertheless, by the establishment of cooperative agreements in non-R&D activities, firms may access external knowledge and resources which may lead to an extension in their technological capabilities and thus to increasing their innovation expenditure and the likelihood of introducing innovations.…”

Input, Output, and Behavioral Additionality of Innovation Subsidies

“…However, in the case of developing countries, the lack of micro-data has not allowed additionalities to be studied sequentially. However, it is possible to find some valuable examples for developing countries, especially in the case of Latin America as it can be seen in Sanguinetti (2005), Chudnovsky et al(2006), and Crespi et al(2016) for Argentina; Fernández-Sastre and Martín-Mayoral (2015) in the case of Ecuador; Tello (2015) for Peru; Aboal and Garda (2015) in Uruguay; Crespi et al(G. Crespi et al, 2015), Busom and Vélez-Ospina (2017), and Barrios, Forero and Perry (2018) for the case of Colombia, and the literature review of Crespi and Maffioli (2014) for all Latin America.Methodology It is possible to see that literature about innovation subsidies additionalities has been overlooked; first, the effects of subsidies on other variables different from the ones measuring input additionalities. Second, the long-term effects of subsidies on firms.…”

Políticas de innovación regional, versus el carácter sectorial de la innovación: caso industria conservera de pescado del Ecuador

“…Ecuador es un país de ingresos medios, especializado en actividades de bajo valor agregado, caracterizado como un proveedor de petróleo y materias primas y como importador de tecnología en el mercado internacional (Fernández-Sastre & Martín-Mayoral, 2015). La economía ecuatoriana esencialmente basada en la explotación de sus recursos naturales, ha experimentado un incipiente desarrollo hacia la producción.…”

“…(Rodríguez Rodríguez & González Lopez, 2017). La innovación no solo se relaciona con las actividades formales de I + D, sino también con la absorción de tecnología externa y los insumos no relacionados con I + D, como la adquisición de maquinaria y equipo, diseño, desarrollo de ingeniería, experimentación, capacitación y marketing, que también son fundamentales para el proceso de innovación (Fernández-Sastre & Martín-Mayoral, 2015) Por su parte, Schumpeter, considera que existe innovación en los siguientes casos:…”