Innovation, firm productivity, and export survival: firm-level evidence from ASEAN developing countries

AbstractThis firm-level study investigates the importance of innovation as a determinant of firm productivity and how firm productivity could impact firm export survival. This is the first integration of the innovation approach, productivity approach, and firm survival approach to explore their linkages at the regional level in ASEAN developing countries. Using the panel database from the World Bank Enterprise Survey, which covers six developing countries in ASEAN—the Philippines, Indonesia, Vietnam, Laos, Cambodia, and Myanmar—and also covers six selected industries, we construct four equations: innovation inputs, innovation output, firm productivity, and export survival. The four equations’ findings suggest that the technology level of the sector, firm size, and exports are significant factors for R&D expenditure (innovation input). R&D expenditure is a significant driver of a firm’s product and process innovation (innovation output). Increasing firm productivity in the six ASEAN developing countries we considered is driven by process innovation rather than product innovation, and productive firms are more likely to survive in the export market.

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Technological Innovations and Market Power: A Study of Indian Pharmaceutical Industry

Millennial Asia ◽

10.1177/0976399620944272 ◽

2020 ◽

pp. 097639962094427

Author(s):

Madan Dhanora ◽

Ruchi Sharma ◽

Walter G. Park

Keyword(s):

Pharmaceutical Industry ◽

Market Power ◽

Process Innovation ◽

Technological Innovations ◽

Firm Level ◽

Innovation Activities ◽

Product And Process Innovation ◽

Product And Process ◽

The Impact ◽

Indian Pharmaceutical Industry

Technological innovations are positively associated with firms’ market performance. This study aims to examine the impact of product and process innovation on the market power of 168 Indian pharmaceutical firms during 2000–2013. We generate product and process patent stock to capture firm-level innovation activities. Findings of this study suggest that both product and process innovation positively influence firms’ market power. Results also reveal that MNEs enjoy more market power in the Indian pharmaceutical industry. Further, this study also highlights that there is a differential impact of firms’ product group on market power. This study concludes that patenting is a positive source of firm performance in the Indian pharmaceutical industry.

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Utilities: Innovation and Sustainability

Sustainability ◽

10.3390/su11041085 ◽

2019 ◽

Vol 11 (4) ◽

pp. 1085 ◽

Cited By ~ 5

Author(s):

Enrique Loredo ◽

Nuria Lopez-Mielgo ◽

Gustavo Pineiro-Villaverde ◽

María García-Álvarez

Keyword(s):

Product Innovation ◽

Process Innovation ◽

Water Utilities ◽

Firm Level ◽

Playing Field ◽

Process Innovations ◽

Search Processes ◽

Relevant Role ◽

Product And Process Innovation ◽

Product And Process

Pro-market reforms have disrupted the playing field and strongly affected the innovative behavior of electricity, gas and water utilities. Beyond a significant reduction in sectoral R&D investments, very little is known about how these firms accomplish their innovation strategies in this new scenario. Given this gap in the literature, the first aim of this paper is to identify the internal determinants of both the product and process innovation of utilities in a liberalized environment. Additionally, there is another external force that is also disrupting the specific landscape of utilities: the sustainability challenge. Therefore, the second aim of this paper is establishing whether sustainability-orientation is a driver of innovation in the utilities industries. The empirical study is carried out on a panel of 82 Spanish electricity, gas and water utilities over the period 2005–2012 (Technological Innovation Panel dataset (PITEC)). The main findings are: (i) the acquisition of disembodied knowledge does not play a relevant role for utilities; (ii) non-formal search processes are central to product innovation; (iii) some markets for technology –external R&D and technology embedded in equipment—are determinant factors for process innovation; (iv) sustainability orientation increases the likelihood of generating both, product and process innovations. These firm-level results are novel contributions to the field of utility management.

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The Role of External Interaction for Innovation in Irish High-Technology Businesses

The International Journal of Entrepreneurship and Innovation ◽

10.5367/ijei.2011.0046 ◽

2011 ◽

Vol 12 (4) ◽

pp. 248-256 ◽

Cited By ~ 4

Author(s):

Declan Jordan ◽

Eoin O'Leary

Keyword(s):

High Technology ◽

Process Innovation ◽

Relative Importance ◽

Business Innovation ◽

Negative Effect ◽

Product And Process Innovation ◽

Innovation Output ◽

Product And Process ◽

Positive Effect

There is growing empirical evidence that external interaction is an important source of knowledge for business innovation. This paper contributes to the innovation literature by using new measures of interaction to explore the relative importance of external interaction for innovation in Irish high-technology businesses. Based on survey data, the paper finds that external interaction increases the probability of product and process innovation, but the effect is inconsistent across all external interaction agents. Interaction along the supply chain has a positive effect on innovation, and interaction with competitors has an insignificant effect on innovation output. Notably, the paper finds that interaction with higher education institutions has a negative effect on the probability of product and process innovation.

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Exploring firm-level innovation and productivity in India

International Journal of Innovation Science ◽

10.1108/ijis-10-2020-0179 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Aswini Kumar Mishra ◽

Abhishek Kumar Sinha ◽

Abhijeet Khasnis ◽

Sai Theja Vadlamani

Keyword(s):

Process Innovation ◽

The Other ◽

Firm Productivity ◽

Content Type ◽

Organisational Innovation ◽

Significant Contributor ◽

Other Hand ◽

Product And Process Innovation ◽

Product And Process ◽

Research Intensity

Purpose This paper aims to analyse the impact of innovation on the productivity of firms in India using the data from the World Enterprise Survey. This paper first classifies three different types of innovation measures then further analyses their relation with the productivity of the firms. Design/methodology/approach The methodology used for this study has incorporated the structural Crépon-Douget-Mairesse (CDM) model wherein productivity is measured using both the innovation inputs and the innovation outputs. Three main equations have been used to quantify this relation includes the knowledge intensity function, innovation function and the productivity equation. Findings Findings indicate that decision to invest in research and development (R&D) is influenced negatively by financial obstacles and trade obstacles and positively influenced by telecommunication obstacles, government obstacles and the size of the firm in India. Similarly, financial obstacles and the size of the firm are affecting the firm’s research expenditure per employee. Also, financial obstacles seem to hinder the research intensity and larger firms seem to have higher research intensity. The size of the firm contributes significantly to product innovation. However, R&D spending seems to be negatively related to the innovation outcome. The findings relating to productivity shows neither product nor process innovation outputs, independently are not contributing significantly to the productivity of firms. However, product and process innovation, together serve as innovation outputs is a significant contributor to firm productivity. On the other hand, organisational innovation contributes significantly to the productivity of the firms in a negative manner. Originality/value The findings relating to productivity shows neither product nor process innovation outputs, independently are not contributing significantly to the productivity of firms (which has been measured by sales per worker is impacted by the capital and the labour inputs). However, product and process innovation, together serve as innovation outputs is a significant contributor to firm productivity. On the other hand, organisational innovation contributes significantly to the productivity of the firms in a negative manner. The reason could be due to the fact that the definition of organisational innovation incorporates both dissolutions and mergers.

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Effects of information sources for new customers and suppliers on the immediate innovation output of firms

European Journal of Innovation Management ◽

10.1108/ejim-09-2018-0202 ◽

2019 ◽

Vol 22 (4) ◽

pp. 660-680 ◽

Cited By ~ 3

Author(s):

Pankaj Kumar Medhi ◽

Palakh Jain ◽

Tinu Jain

Keyword(s):

Information Sources ◽

Sources Of Information ◽

Firm Level ◽

Content Type ◽

Level Data ◽

Product And Process Innovation ◽

Innovation Output ◽

Product And Process ◽

Relational Aspect ◽

Types Of Information

Purpose The purpose of this paper is to propose a typology of the information sources for new customers or suppliers on the basis of their existing relational linkage with the acquiring firm and to further explore whether various types of information sources for new customers and suppliers have any differential effect on a firm’s immediate innovation output. Design/methodology/approach The research sample was taken from the data collected by WB enterprise surveys (2005). The WB enterprise survey is considerably comprehensive for firm-level data. Relevant questions for the study were extracted from the survey. Simultaneously, EFA, CFA and SEM using AMOS 6.0 was run for the analysis. Findings The findings confirm that sources for a new customer and supplier with a strong relational aspect have a significant positive effect on a firm’s innovation output in the immediately following period. Research limitations/implications The research acknowledges the need to measure the effect of new supplier/customer on innovation depending on the type of information sources separately for product and process innovation as one of the major limitations. Practical implications This research can help managers obtain information of holistic and critical nature to incorporate in decision making for improving firm performance in innovation. Originality/value Customers and suppliers are well-established external sources of innovation ideas and information. But to what extant new customers or suppliers may be effective resources for innovation may depend largely on the sources through which they themselves are acquired by a firm, which is relatively unexplored. This study addresses the gap is the first of its kind to explore the role of the sources of information for new customer/supplier on a firm’s innovation output in the immediately following period.

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THE IMPACT OF THE HETEROGENEITY OF EMPLOYEES’ QUALIFICATIONS ON FIRM-LEVEL INNOVATION: EVIDENCE FROM NIGERIAN FIRMS

International Journal of Innovation Management ◽

10.1142/s1363919621500110 ◽

2020 ◽

pp. 2150011

Author(s):

STEPHEN KEHINDE MEDASE

Keyword(s):

Product Innovation ◽

Dynamic Capabilities ◽

Process Innovation ◽

Firm Level ◽

Highly Educated ◽

Recursive Bivariate Probit ◽

Product And Process Innovation ◽

Service Sectors ◽

Product And Process ◽

The Impact

The capacity to generate knowledge and disseminate it in a firm is considered a primary strategic competence to attaining competitive gain. Knowledge literature reveals how relevant it is to increase interest in recognising and managing knowledge inherent in workforces and other firms’ dynamic capabilities that allow them to benefit from available knowledge within the milieu. In recognising the importance of employees’ baggage of knowledge, this study uses the Nigerian Innovation Survey for two waves, 2008 and 2010 of 1359 repeated observations of firms in the manufacturing and service sectors to examine the interplay of firms’ dynamic capabilities and innovation optimisation. It uses a recursive bivariate probit and a Tobit model for the estimations. Evidence shows that PhD, BSc, and Diploma associate positively and significantly with the ability of the firms to introduce product innovation. On the moderating estimations, there are mixed results regarding the blend of employees’ qualifications, training and internal R&D. Based on this, while the share of the highly educated workforce supports the introduction of product innovation, it does not, however, substantially increase the probability of firm-level innovativeness regarding process innovation. Although the blend of BSc and HND with R&D supports the propensity to introduce process innovation, it results in a decline with Diploma and R&D. The implication of the results offers management some investment choices on the initiation of formal training and the management of internal R&D through employees’ expertise. This study contributes to the existing literature on the relevance of employees’ different degrees being reinforced by training and internal R&D being boosted by employees’ qualifications in supporting the development of product and process innovation.

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