The effects of innovation activities and size on technological innovation in South American manufacturing firms

Abstract

The process innovation approach is applied in an exploratory research using data gathered from the World Bank Enterprises Survey (WBES). Using probit models on a sample of 1,965 manufacturing firms from seven South American countries, the effects of innovation activities on product and process innovation are determined. Findings indicate that there is a positive relationship. However, these relationships can be different depending on the type of innovation and the size of the firm. We found that most of these activities are related more to product innovation than process innovation, and these relationships have greater statistical significance in SMEs than large companies. Lastly, given the positive effect on these relationships, we conclude by highlighting the importance of managers crafting their innovation portfolios properly and the need for further research to determine the innovative behaviour of manufacturing companies in the context of their respective developing country.

Innovation and performance in Peruvian manufacturing firms: does R&D play a role?

“…Moreover, the role of non-R&D can be positive or negative depending on the efficiency of the purchased equipment; for example, if the existing machinery and equipment are outdated, they do not contribute to productivity (Mariev, Nagieva, Pushkarev, Davidson, & Sohag, 2022). LAC countries have historically experienced low participation in R&D investment in the productive sector (Hall & Maffioli, 2008;ECLAC, 2022), even though there is a definite and increasing progress in innovation and R&D in LAC manufacturing industries (Paula & Silva, 2021;Seclen-Luna & Morales, 2022). However, innovation and technology gaps remain problematic (Viglioni et al, 2020), especially since R&D investments in the LAC are also more skewed and concentrated on a small number of firms; specifically, larger firms tend to innovate more frequently.…”

“…LAC countries have historically experienced low participation in R&D investment in the productive sector (Hall & Maffioli, 2008;ECLAC, 2022). However, there has been increasing progress in innovation and R&D in LAC manufacturing industries (Paula & Silva, 2021;Seclen-Luna & Morales, 2022). According to Cancino, Merig o, Urbano, and Amor os (2020) and Rom an, Cancino, and Gallizo (2017), this concern with understanding the determining factors of R&D investment, innovation and its results, has grown steadily in recent years.…”

Innovation in Latin America and the Caribbean from Advanced Human Capital: Contribution to the Development of Patents in Emerging Countries

“…Although the impact of investment in Research and Development (R&D) about product and process innovation has been widely explored in developed markets, there is limited information in emerging countries, mainly due to the scarcity of data (Ortiz et al, 2023). Several authors agree that R&D is the source of knowledge generation and its transformation into results, becoming a fundamental axis to promote the innovative capacity of companies and countries (Parrilli, 2010;Seclen-Luna & Morales, 2022). Conclusions from Ortiz et al (2023) show a positive relationship between R&D and innovation in Latin American companies.…”

“…Meanwhile, the patenting indicator is lifted from the World Intellectual Property Organization (WIPO), a United Nations agency, a global reference source for information on intellectual property. The two records have been validated and used in various research and theoretical-methodological references (Quintero et al, 2021;Seclen-Luna & Morales, 2022;Zamora & Favila, 2018).…”