Determinants of the Adoption of Innovation in Ecuador

Abstract

Using a 2-stage binary choice estimation, the factors that motivate firms to adopt previously developed innovations in products and processes are determined. A database of 8 025 Ecuadorian firms from the National Survey of Science, Technology and Innovation Activities, in its 2009-2011 and 2012-2014 editions, is used. The results show that the firm's cognitive resource, collaborative attitudes with customers and suppliers and the communication channels have a positive impact on the adoption of innovation. The size of the firm has a U-shaped relation with the adoption of innovation while the level of exports does not have any effect.