Title

Persistence in generating and adopting product innovations: Evidence for manufacturing firms in a developing country

DOI

https://doi.org/10.1108/ARLA-08-2015-0197

Document Type

Article

Publication Date

1-1-2016

Publication Title

Academia Revista Latinoamericana de Administracion

Abstract

PurposeThe purpose of this paper is to test the existence of true persistence in the generation and adoption of product innovations in the context of a developing country. Design/methodology/approachA dynamic probit model with random effects is used to test true persistence relying on a panel data set constructed from three waves of the Colombian innovation survey (Encuesta de Desarrollo e Innvovación Tecnológica) covering the time span from 2003 to 2008. FindingsThis paper empirically shows the existence of true innovation persistence for two of the three types of product innovation studied: the adoption of product innovation that is new to the firm; and the adoption of product innovation that is new to the national market. However, the study could not confirm true persistence in the generation of product innovation. Originality/valueTo the best of our knowledge, this is the first study that systematically tests innovation persistence differentiating between the adoption of innovations that are new to the firm and innovation that is new to the national market. It is also the first study in this research area that uses a dynamic probit model with random effects according to the original specification by Wooldridge (2005).

Volume

29

Issue

2

First Page

125

Last Page

146

ISSN

10128255

Identifier

SCOPUS_ID:84977134101

Documento original

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