Innovation drivers in Ecuadorian manufacturing

Abstract

Purpose The purpose of this paper is to study which are the drivers of different types of innovations for manufacturing firms. The considered innovation types are product, process, organizational and marketing innovations. In addition, this study also aims to understand why most types of innovation (with the exception of organizational innovation) have decreased over time. Design/methodology/approach The two non-overlapping waves of the Ecuadorian National Innovation Activities Survey 2013 and 2015 (NIAS) are used. To identify the determinants of the different types of innovations and to check whether the decisions to innovate are correlated, a tetravariate probit model is used. Findings The results obtained point to some relevant differences in terms of the drivers of the different types of innovation. In addition, it is also evident that with the passage of time, certain problems that may be reducing the incentives to innovate have become more acute. Originality/value The study adds new empirical evidence to the literature on the role of investments in incorporated technology in innovation in developing countries. In particular, for Ecuadorian firms, the acquisition of incorporated technology in capital goods seems to be very relevant. This highlights the existence of a supply-driven innovation strategy. However, there is also room for innovation strategies driven by demand conditions.