Innovation Patterns and Their Effects on Firm-Level Productivity in South Asia
This paper describes and benchmarks innovation activities for a sample of countries in the South Asia region, as well as the impact of these activities on firm-level productivity. The evidence gathered suggests that countries in the South Asia region can be divided into two groups, in terms of the magnitude and composition of the innovation activities: leaders (Bangladesh and India) and laggards (Nepal and Pakistan). Leaders present higher rates of innovation activities than laggards and focus more on process innovation than product innovation. Differences across firms within all countries tend to present similar patterns when considering leaders and laggards, with the acquisition of knowledge capital (for example, research and development investments in equipment, and training) highly concentrated in a few firms, and mature, exporter, and foreign-owned firms as the most innovative of the region. The evidence also suggests a positive impact of innovation on productivity, primarily via incremental innovation, especially in India.
| Main Authors: | , |
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| Format: | Working Paper biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019-06
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| Subjects: | INNOVATION, PRODUCTIVITY, FIRM PRODUCTIVITY, RESEARCH AND DEVELOPMENT, EQUIPMENT INVESTMENT, TRAINING INVESTMENT, |
| Online Access: | http://documents.worldbank.org/curated/en/529261560171443048/Innovation-Patterns-and-Their-Effects-on-Firm-Level-Productivity-in-South-Asia https://hdl.handle.net/10986/31866 |
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| Summary: | This paper describes and benchmarks
innovation activities for a sample of countries in the South
Asia region, as well as the impact of these activities on
firm-level productivity. The evidence gathered suggests that
countries in the South Asia region can be divided into two
groups, in terms of the magnitude and composition of the
innovation activities: leaders (Bangladesh and India) and
laggards (Nepal and Pakistan). Leaders present higher rates
of innovation activities than laggards and focus more on
process innovation than product innovation. Differences
across firms within all countries tend to present similar
patterns when considering leaders and laggards, with the
acquisition of knowledge capital (for example, research and
development investments in equipment, and training) highly
concentrated in a few firms, and mature, exporter, and
foreign-owned firms as the most innovative of the region.
The evidence also suggests a positive impact of innovation
on productivity, primarily via incremental innovation,
especially in India. |
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