Journal
INDUSTRIAL AND CORPORATE CHANGE
Volume 20, Issue 6, Pages 1539-1569Publisher
OXFORD UNIV PRESS
DOI: 10.1093/icc/dtr024
Keywords
O12; O14; C39; O31; O43
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Innovation is a multilevel phenomenon. Not only attributes of firms but also the framework conditions within which firms operate matter. Although this has been recognized in the literature for a long time, a quantitative test that explicitly considers this hypothesis has been lacking. Using a large sample of firms from many developing countries, we estimate a multilevel model of innovation which connects micro and macro levels of analysis in an integrated framework. National economic, technological and institutional framework conditions are shown to directly predict the likelihood of firms to innovate. Nevertheless, the results also draw attention to the limits of the existing models, methods and data.
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