In-house and external sources innovation efforts, innovation and productivity in private companies in Ecuador

Abstract

This work aims to determine whether there are significant differences in the investment results on innovation -specifically in the probability of innovating in products and/or processes, and on labour productivity- when distinguishing between in-house and external sources of innovation. Data from the 2012-2014 innovation survey of Ecuador was used, additionally the methodology proposed by Crépon, Duguet, and Mairesse was applied. The evidence suggests that inhouse innovation makes twice as much impact when it comes to the probability of introducing innovation in products and/or processes than the external sources of innovation, which also shows a greater impact on labour productivity.