Assessing the Effects of Simple and Complex Innovation Strategies on the Performance of Firms in the Philippines
Bayudan-Dacuycuy, Connie; Baje, Lora Kryz C. | August 2018
Abstract
Innovation is the synergistic use of resources, technology, capital, and information to achieve growth at different levels of the economy. Many studies abroad have already supported the hypothesis that innovation leads to a good firm performance and long-term economic growth. In the Philippines, some studies already analyze the effects of simple innovations on firm performance. However, emerging literature shows that complex innovation strategies have bigger impacts than simple ones. In line with this strand of research, this paper analyzes the effects of simple and complex innovations on labor productivity and employment growth. Results show that there is no single best innovation strategy that a firm must undertake. However, if firms are constrained by their budget, a simple innovation will help in improving labor productivity and to some extent, employment growth. Firms that do not face cost issues can benefit more from adopting a complex innovation strategy. In addition, several specific types of complex innovation strategies can be adapted depending on whether the firm aims to increase its employment or to boost its labor productivity.
Citation
Bayudan-Dacuycuy, Connie; Baje, Lora Kryz C.. 2018. Assessing the Effects of Simple and Complex Innovation Strategies on the Performance of Firms in the Philippines. © Philippine Institute for Development Studies. http://hdl.handle.net/11540/8614.Keywords
Development
Trade
Development Goals
Skills Development
Sustainable Development
Trade Flows
Trade And Development
Food Security And Trade
Trade Volume
Trade Potential
Trade Flows
External Trade
Industrial policy
New technology
Innovations
Industry
Export policy
Import policy
Trade Unions
Development assistance
ADB
Curriculum development
Development assistance
Development aid
Development indicators
Development potential
Development models
Project appraisal
Performance appraisal
Regional development bank
Trade development
Import volume
Export volume
Capital
Business
Communication in rural development
Social participation
Occupational training
Partnership
Joint venture
System analysis
Labor and globalization
Labor policy
Regional trading blocs
Foreign trade and employment
Developing countries
Industrial priorities
Technological innovation
Technology transfer
Foreign trade regulation
Industrial relations
Trade-unions
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