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100 _aRaihan, Selim Uddin, Mahtab and Khan, Farhan
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245 _aWhat drives firms to innovate? Empirical evidence from firm-level cross-country data
260 _aThe Indian Journal of Labour Economics
300 _a68(4), Oct-Dec, 2025: p.1187-1208
520 _aWe 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
650 _aProduct Innovation, Process Innovation, Market Innovation, Factors affecting innovations World Bank Enterprise Survey
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773 _aThe Indian Journal of Labour Economics
942 _cAR