01601nam a22001457a 4500 532995 532995 260410b ||||| |||| 00| 0 eng d Raihan, Selim Uddin, Mahtab and Khan, Farhan 60031 What drives firms to innovate? Empirical evidence from firm-level cross-country data The Indian Journal of Labour Economics 68(4), Oct-Dec, 2025: p.1187-1208 We examine the factors influencing firms’ decision to innovate, where innovations are defined as: (i) process innovation, (ii) product innovation, (iii) market innovation, and (iv) a combination of these innovations. We use the World Bank Standardised Enterprise Survey (WB-SES) data 2019, which provides firm-level microdata on 82,497 firms from 142 countries covering 51 sectors. Using least square dummy variable (LSDV) estimation and controlling for country-, year-, and sector-fixed effects, we find that factors such as export orientation, firm size, competition in the domestic (informal) market, training of the workers, and top female managers positively influence firms’ decision to innovate. Furthermore, we find a significant inverse U relationship between institutional variables such as bribes, quality of bureaucracy, and political instability, on a firm’s decisions to innovate.-Reproduced https://link.springer.com/article/10.1007/s41027-025-00594-w Product Innovation, Process Innovation, Market Innovation, Factors affecting innovations World Bank Enterprise Survey 60032 The Indian Journal of Labour Economics AR 0 0 ddc 0 0 408166 IIPA IIPA 2026-04-10 68(4), Oct-Dec, 2025: p.1187-1208 AR138507 2026-04-10 AR