Perspectives of Innovations, Economics and Business

  Previous Article | Back to Volume | Next Article
  Abstract | References | Citation | Download | Preview | Statistics
Volume 14
Issue 1
Online publication date 2014-02-06
Title What determines firms’ innovation in Eastern Europe and Central Asia
Author Elvin Afandi, Majid Kermani
Abstract By employing a rich sample of firm-level data in seven Eastern Europe and Central Asian countries from Europe and Central Asia, our paper investigates core as well as some specific determinants of firm innovation. We find that the likelihood of engaging in innovation for a firm increases with its core socio-economic characteristics such as size, age, capacity utilization, domestic competition and foreign ownership. In addition to the estimates of these socio-economic covariates, the ultimate purpose of our study is to obtain more in-depth knowledge about the policy implacable factors for firm innovation that the countries could focus on. These policy-related factors are: (i) access to finance, (ii) human capital, and (iii) foreign trade. In this respect, our study finds that firm’s innovation increases with better financial inclusion, greater human capital and engagement in foreign trade. We argue that these analysis and results, coupled with inclusive and targeted policies, can be used to enrich the process of private sector innovation in the region’s countries.
Citation
References
Aghion, P., Bloom, N., Blundell, R., Griffith, R., Howitt, P., 2005. "Competition and innovation: An inverted-u relationship," Quarterly Journal of Economics, 120: 701- 728
 
Aghion, P., Durlauf, D., 2005. Handbook of economic growth, Eds., Amsterdam: North-Holland Elsevier Publishers
 
Almeida, R., Fernandes, A., 2008. "Openness and technological innovations in developing countries: Evidence from firm-level surveys," The Journal of Development Studies, 44: 701-727', http://dx.doi.org/10.1080/00220380802009217
 
Baumol, W., 2002. The free-market innovation machine: Analyzing the growth miracle of capitalism (Princeton University Press, Princeton)
 
Benfratello, L., Schiantarelli, F., Sembenello, A., 2006. "Banks and Innovation: Microeconomic Evidence on Italian Firms," Boston College Working Paper 631
 
Bogliacino, F., Cardona, S., 2010. "The determinants of R&D Investment: the role of Cash flow and Capabilities," JRC-IPTS Working Papers on Corporate R&D and Innovation 2010-10
 
Carreira, C., Silva, F., 2010. "Financial constraints: Are there differences between manufacturing and services?," GEMF Working Papers 2010-16
 
Cincer, M., Ravet, J., 2010. "Financing constraints and R&D investments of large corporations in Europe and the USA," JRC-IPTS Working Papers on Corporate R&D and Innovation 2010-03
 
Hall, B., Lerner, J., 2009. "The financing of R&D and innovation," NBER Working Papers 15325
 
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., 2002. "Government Ownership of Banks," Journal of Finance, 57: 265-301, http://dx.doi.org/10.1111/1540-6261.00422
 
Levine, R., Loayza, N., Beck, T., 2000. "Financial intermediation and growth: Causality and causes," Journal of Monetary Economics, 46: 31-77, http://dx.doi.org/10.1016/S0304-3932(00)00017-9
 
Maksimovic, V., Ayyagari, M., Demirguc, A., 2007. "Firm innovation in emerging markets: The role of governance and finance," World Bank Policy Research Working Paper No.4157
 
Organization of Economic Cooperation and Development (OECD), 2005. Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data (3rd edition)
 
Shleifer, A., 1998. "State versus private ownership," Journal of Economic Perspectives, 12: 133-150, http://dx.doi.org/10.1257/jep.12.4.133
 
Sutton, J., 2007. "Quality, trade and the moving window: The globalization process," The Economic Journal, 117: 469-498, http://dx.doi.org/10.1111/j.1468-0297.2007.02119.x
 
Keywords Firm innovation, access to finance, human capital, foreign trade
DOI http://dx.doi.org/10.15208/pieb.2014.01
Pages 1-20
Download Full PDF Download
  Previous Article | Back to Volume | Next Article
Share
Search in articles
Statistics
Journal Published articles
PIEB 611
Journal Hits
PIEB 1563726
Journal Downloads
PIEB 27328
Total users online -