Innovation Patterns and Their Effects on Firm-Level Productivity in South Asia

43 Pages Posted: 5 Aug 2019

See all articles by X. Cirera

X. Cirera

Institute of Development Studies; World Bank

Ana P. Cusolito

World Bank

Date Written: June 10, 2019

Abstract

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.

Keywords: Legislation, Real & Intellectual Property Law, Social Policy, Intellectual Property Rights, Legal Products, Common Property Resource Development, Legal Reform, Regulatory Regimes, Judicial System Reform, Inequality, Pulp & Paper Industry, Textiles, Apparel & Leather Industry, Food & Beverage Industry, Common Carriers Industry, Plastics & Rubber Industry, General Manufacturing, Construction Industry, Business Cycles and Stabilization Policies, Innovation, International Trade and Trade Rules

Suggested Citation

Cirera, Xavier and Cusolito, Ana P., Innovation Patterns and Their Effects on Firm-Level Productivity in South Asia (June 10, 2019). World Bank Policy Research Working Paper No. 8876. Available at SSRN: https://ssrn.com/abstract=3430482

Xavier Cirera (Contact Author)

Institute of Development Studies ( email )

University of Sussex
Falmer, Brighton, East Sussex BN1 9RE
United Kingdom

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Ana P. Cusolito

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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