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A Systems View Across Time and Space

Table 7 Interaction between innovation and the business environment

From: Innovation and employment growth: evidence from manufacturing firms in Africa

 

(1)

(2)

(3)

Employment growth

Employment growth

Employment growth

Innov (0 = no innovation)

 1 (= Process/Product)

0.07*

  

(0.0322)

  

 2 (= Process × Product)

0.1**

  

(0.0371)

  

Process (1 = yes)

 

0.10**

 
 

(0.0304)

 

Product (1 = yes)

  

0.09**

  

(0.0314)

Electricity (1 = yes)

0.01

0.01

− 0.003

(0.0190)

(0.0181)

(0.0168)

Bureaucracy

− 0.0006

− 0.0006

− 0.0007+

(0.000420)

(0.000399)

(0.000375)

Bribe

0.001

0.002

0.0005

(0.00142)

(0.00144)

(0.00131)

Competition

− 0.007

− 0.005

− 0.02

(0.0186)

(0.0172)

(0.0160)

Innovation × Electricity

 1

− 0.09**

  

(0.0340)

  

 2

− 0.09**

  

(0.0345)

  

Innovation × Bureaucracy

0.00010

  

(0.000312)

  

Innovation × Bribe

− 0.0005

  

(0.000989)

  

Innovation × Competition

 1

− 0.02

  

(0.0308)

  

 2

− 0.0007

  

(0.0285)

  

Process × Electricity

 

− 0.08**

 
 

(0.0286)

 

Process × Bureaucracy

 

0.00008

 
 

(0.000525)

 

Process × Bribe

 

− 0.001

 
 

(0.00190)

 

Process × Competition

 

− 0.009

 
 

(0.0245)

 

Product × Electricity

  

− 0.07*

  

(0.0299)

Product × Bureaucracy

  

0.0003

  

(0.000531)

Product × Bribe

  

0.0004

  

(0.00189)

Product × Competition

  

0.02

  

(0.0248)

Country fixed effects

Yes

Yes

Yes

ISIC

Yes

Yes

Yes

Constant

0.4***

0.4***

0.4***

(0.0570)

(0.0567)

(0.0558)

N

5389

5337

5370

R 2

0.068

0.065

0.068

Adj. R2

0.056

0.054

0.057

  1. Note: (1) All models are pooled OLS with standard errors adjusted for clusters using unique firm identifiers. (2) Standard errors in parentheses. (3) Significance levels: +p < 0.10, *p < 0.05, **p < 0.01, ***p < 0.001. (4) All models control for firm-specific characteristics
  2. Source: Authors’ own computation based on WBES, 2018