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Firm Innovation in Emerging Markets: The Role of Finance, Governance, and Competition

  • Meghana Ayyagari (a1), Asli Demirgüç-Kunt (a2) and Vojislav Maksimovic (a3)
Abstract
Abstract

We investigate the firm characteristics associated with innovation in over 19,000 firms across 47 developing economies. While existing finance literature on innovation is limited to large public firms in developed markets such as the United States, our database includes public and private firms, and small and medium-sized enterprises. We define innovation broadly to include introduction of new products and technologies, knowledge transfers, and new production processes. We find that access to external financing is associated with greater firm innovation. Further, having highly educated managers, ownership by families, individuals, or managers, and exposure to foreign competition is associated with greater firm innovation.

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This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

D. B. Audretsch Entrepreneurship, Innovation and Economic Growth. Cheltenham, UK: Edward Elgar Publishing (2006).

W. J Baumol . The Free-Market Innovation Machine: Analyzing the Growth Miracle of Capitalism. Princeton, NJ: Princeton University Press (2002).

M. Dutz Unleashing India’s Innovation: Toward Sustainable and Inclusive Growth. Washington, DC: The World Bank (2007).

R. K. Morck ; D. A. Stangeland ; and B. Yeung . “Inherited Wealth, Corporate Control, and Economic Growth: The Canadian Disease?” In Concentrated Corporate Ownership, R. K. Morck , ed. Chicago, IL: University of Chicago Press (2000), 319369.

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Journal of Financial and Quantitative Analysis
  • ISSN: 0022-1090
  • EISSN: 1756-6916
  • URL: /core/journals/journal-of-financial-and-quantitative-analysis
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