Innovation and productivity in formal and informal firms in Ghana

Xiaolan Fu, Pierre Mohnen, G. Zanello

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Despite the high profile of the issue in current policy formulations in low-income countries (LICs), there is little large firm level survey based empirical evidence on innovativeness and firm performance, especially in informal establishments. This paper aims to fill this gap in the literature using a revised Crepon-Duguet-Mairesse (CDM) structural model to analyse data from a unique innovation survey of 501 manufacturing firms in Ghana. We find that innovation positively impacts the labour productivity of firms, technological innovations more than managerial innovations. Formal firms do not tend to be more productive than informal firms, but the role of innovation on productivity tends to be greater for formal firms.

Original languageEnglish
Pages (from-to)315-325
Number of pages11
JournalTechnological Forecasting and Social Change
Volume131
DOIs
Publication statusPublished - Jun 2018

Keywords

  • Innovation
  • Productivity
  • Informality
  • Ghana
  • SUB-SAHARAN AFRICA
  • DEVELOPING-COUNTRIES
  • EMERGING MARKETS
  • DIFFUSION
  • GROWTH
  • ENTREPRENEURSHIP
  • PERFORMANCE
  • ENTERPRISES
  • COMPETITION
  • TECHNOLOGY

Cite this

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title = "Innovation and productivity in formal and informal firms in Ghana",
abstract = "Despite the high profile of the issue in current policy formulations in low-income countries (LICs), there is little large firm level survey based empirical evidence on innovativeness and firm performance, especially in informal establishments. This paper aims to fill this gap in the literature using a revised Crepon-Duguet-Mairesse (CDM) structural model to analyse data from a unique innovation survey of 501 manufacturing firms in Ghana. We find that innovation positively impacts the labour productivity of firms, technological innovations more than managerial innovations. Formal firms do not tend to be more productive than informal firms, but the role of innovation on productivity tends to be greater for formal firms.",
keywords = "Innovation, Productivity, Informality, Ghana, SUB-SAHARAN AFRICA, DEVELOPING-COUNTRIES, EMERGING MARKETS, DIFFUSION, GROWTH, ENTREPRENEURSHIP, PERFORMANCE, ENTERPRISES, COMPETITION, TECHNOLOGY",
author = "Xiaolan Fu and Pierre Mohnen and G. Zanello",
note = "Data source : survey conducted in Ghana, under ESRC/DFID Grant ‘The Diffusion of Innovation in Low Income Countries’ (ES/J008699/1).",
year = "2018",
month = "6",
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language = "English",
volume = "131",
pages = "315--325",
journal = "Technological Forecasting and Social Change",
issn = "0040-1625",
publisher = "Elsevier Science",

}

Innovation and productivity in formal and informal firms in Ghana. / Fu, Xiaolan; Mohnen, Pierre; Zanello, G.

In: Technological Forecasting and Social Change, Vol. 131, 06.2018, p. 315-325.

Research output: Contribution to journalArticleAcademicpeer-review

TY - JOUR

T1 - Innovation and productivity in formal and informal firms in Ghana

AU - Fu, Xiaolan

AU - Mohnen, Pierre

AU - Zanello, G.

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AB - Despite the high profile of the issue in current policy formulations in low-income countries (LICs), there is little large firm level survey based empirical evidence on innovativeness and firm performance, especially in informal establishments. This paper aims to fill this gap in the literature using a revised Crepon-Duguet-Mairesse (CDM) structural model to analyse data from a unique innovation survey of 501 manufacturing firms in Ghana. We find that innovation positively impacts the labour productivity of firms, technological innovations more than managerial innovations. Formal firms do not tend to be more productive than informal firms, but the role of innovation on productivity tends to be greater for formal firms.

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KW - Informality

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KW - SUB-SAHARAN AFRICA

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KW - EMERGING MARKETS

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KW - GROWTH

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KW - PERFORMANCE

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