A multilevel analysis of innovation in developing countries

Martin Srholec, Centre for Technology, Innovation and Culture (TIK). University of Oslo

Innovation is a multilevel phenomenon. Not only individual characteristics of firms, but also the environment within which firms operate matters for innovation. Although this has been always recognized in the literature and more recently conceptualized in the notion of innovation systems, a quantitative test that explicitly concerns this hypothesis remains lacking. Using data from the Productivity and Investment Climate Survey organized by the World Bank for about 16,000 firms in 28 countries, most of which are behind the technology frontier, we estimate a multilevel model of innovation that integrates factors at different levels of the analysis. The results indicate that the national environment directly influence the likelihood of firms to innovate and also affects the relationship between size, age, various aspects of firm’s capabilities and their innovativeness.

Venue: Conference room 4th floor, Keizer Karelplein 19

Date: 17 April 2008

Time: 16:00 - 17:00