Does economy wide knowledge spillover determine firm level process innovation
Nankai Business Review International
ISSN: 2040-8749
Article publication date: 24 February 2022
Issue publication date: 6 May 2022
Abstract
Purpose
The purpose of this study is to see how the economy-wide spillover effect affects company process innovation.
Design/methodology/approach
To account for national differences, the current study used a hierarchical model.
Findings
The findings of this study show that knowledge spillover is related to and influences the innovation process of businesses. Only a level two study that takes into account country-specific differences may reveal this. The current work uses a hierarchical model to try to capture knowledge spillover. Furthermore, the findings suggest that medium and large businesses, as well as businesses conducting research and development (R&D), are more inventive than small businesses and firms not conducting R&D. Furthermore, female-owned businesses are more likely than their male counterparts to innovate their processes.
Originality/value
This study is unique in that it makes predictions about how businesses innovate (behave) based on firm-level characteristics, or macroeconomic structure, without sacrificing information and variance. Furthermore, this study attempts to solve the difficulty of prior empirical research’s single-level analysis and cross-level inference. The research is based on data from the 2019 World Bank regular Enterprise Survey, which includes 18,148 businesses from 38 countries.
Keywords
Acknowledgements
Data availability: On request, the whole data set as well as R scripts may be found in the GitHub repository.
Citation
Wedajo, A.D., Berhe, M.W. and Xiao, H. (2022), "Does economy wide knowledge spillover determine firm level process innovation", Nankai Business Review International, Vol. 13 No. 2, pp. 266-288. https://doi.org/10.1108/NBRI-02-2021-0010
Publisher
:Emerald Publishing Limited
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