TY - JOUR
T1 - The finance of innovation in Latin America
AU - Fernandez, Viviana
N1 - Publisher Copyright:
© 2017 Elsevier Inc.
PY - 2017/10
Y1 - 2017/10
N2 - This study contributes to the extant literature on innovation by examining how private companies fund innovation activities and R&D in Latin America. Specifically, this study seeks to identify whether innovative companies exhibit financing patterns different from those of non-innovative ones. In addition, this study aims at gauging the association between innovation and firm features, such as age, bank financing, female participation in ownership, financial constraints, and foreign ownership, among others. Based on information for Argentina, Colombia, Chile, Mexico, and Peru for 2010, firm size, firm age, financial constraints, and funding sources appear as the main drivers of innovation in Latin American countries. The figures also show that over 60% of the sampled firms displayed a very low or non-existent innovation level. A pending strategic task in Latin America is to increase both the R&D expenditure/GDP ratio and patent activities, and to attract highly-qualified researchers to industry.
AB - This study contributes to the extant literature on innovation by examining how private companies fund innovation activities and R&D in Latin America. Specifically, this study seeks to identify whether innovative companies exhibit financing patterns different from those of non-innovative ones. In addition, this study aims at gauging the association between innovation and firm features, such as age, bank financing, female participation in ownership, financial constraints, and foreign ownership, among others. Based on information for Argentina, Colombia, Chile, Mexico, and Peru for 2010, firm size, firm age, financial constraints, and funding sources appear as the main drivers of innovation in Latin American countries. The figures also show that over 60% of the sampled firms displayed a very low or non-existent innovation level. A pending strategic task in Latin America is to increase both the R&D expenditure/GDP ratio and patent activities, and to attract highly-qualified researchers to industry.
KW - Funding sources
KW - Human capital
KW - Innovation
KW - Logit model
KW - R&D expenditures
UR - http://www.scopus.com/inward/record.url?scp=85028702988&partnerID=8YFLogxK
U2 - 10.1016/j.irfa.2017.08.008
DO - 10.1016/j.irfa.2017.08.008
M3 - Article
AN - SCOPUS:85028702988
SN - 1057-5219
VL - 53
SP - 37
EP - 47
JO - International Review of Financial Analysis
JF - International Review of Financial Analysis
ER -