Arbeitspapier

Innovation Strategies and Productivity Growth in Developing Countries: Evidence from Pakistan

We examine the determinants of product, process, and organizational innovation, and their impact on firm labor productivity using data from a unique innovation survey of firms in Pakistan. We find significant heterogeneity in the impact of different innovations on labor productivity: Organizational innovation has the largest effect followed by process innovation. But unlike much of the literature, we found a negative impact of product innovation suggesting a disruption effect of new products; however, this is mitigated if new products are paired with process or organizational innovations. We find a strong impact of engaging in knowledge creation on product and process innovation. We found that external knowledge networks and innovation cooperation play no significant role in firms’ decision to perform R&D and its intensity, though vertical linkages with suppliers (clients) promote product (process) innovations. Foreign competition has a negative effect on product innovation and a positive effect on organizational innovation.

Language
Englisch

Bibliographic citation
Series: GLO Discussion Paper ; No. 466

Classification
Wirtschaft
Innovation and Invention: Processes and Incentives
Management of Technological Innovation and R&D
Firm Performance: Size, Diversification, and Scope
Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
Single Equation Models; Single Variables: Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
Firm Behavior: Empirical Analysis
Subject
Technological Innovation
organizational innovation
labor productivity
developing countries
Labor intensive industries

Event
Geistige Schöpfung
(who)
Wadho, Waqar
Chaudhry, Azam
Event
Veröffentlichung
(who)
Global Labor Organization (GLO)
(where)
Essen
(when)
2020

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Wadho, Waqar
  • Chaudhry, Azam
  • Global Labor Organization (GLO)

Time of origin

  • 2020

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