Determinants of innovation skills of msmes at the metropolitan zone of the valley of mexico

Abstract

People-based innovation has become an alternative for micro, small and medium enterprises (msmes) to compete in current business environment. This paper measures innovation skills through the General Index of Innovation Skills in the Individual, which has seven basic dimensions. This index is contrasted in a sample of 1,010 msmes from the Metropolitan Zone of the Valley of Mexico. A factor analysis is performed in order to establish the structure of the indicator. In addition, through logit regression, the determinants of innovation skills are estimated. Based on the results, it is found that education, gender, seniority, and the position of the individual, as well as the size and years of operation of the company, are positive factors for innovation skills. Therefore, supporting smes with collaborators with these type of attributes is suggested as a practical implication for public policy-makers.