JEL Classification System
C34, D24, L60, O31, O32
Abstract
We examine firms’ propensity to engage in innovation activities and the impact of innovation on firm-level productivity in the Philippine manufacturing firms using comprehensive firm-level data from the 2015 World Bank Enterprise Survey. We use two main specifications: the probit model to assess firms’ propensity to innovate, and endogenous switching regression to evaluate the impact of innovation on productivity and address endogeneity issues. Our empirical findings suggest that the propensity of firms to engage in innovation is low and negatively affected by R&D intensity and capital intensity. We find evidence of beneficial effects for both product and process innovations on firm-level productivity for firms that innovate compared to firms that chose not to innovate at all.
Recommended Citation
Catacutan, Zandro M. and Onuh, Willington O.
(2023)
"Nexus of Innovation and Firm-Level Productivity: Evidence from Philippine Manufacturing Firms,"
DLSU Business & Economics Review: Vol. 32:
No.
2, Article 9.
DOI: https://doi.org/10.59588/2243-786X.1161
Available at:
https://animorepository.dlsu.edu.ph/ber/vol32/iss2/9
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