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Table 9 Innovation and productivity

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

  (1) (2) (3) (4) (5) (6)
Productivity Productivity Productivity Productivity Productivity Productivity
Innov (0 = no innovation)
 1 (= Process/Product) 0.3***    0.3***   
(0.0588)    (0.0613)   
 2 (= Process × Product) 0.3***    0.3***   
(0.0580)    (0.0616)   
Process (1 = yes)   0.3***    0.3***  
  (0.0514)    (0.0544)  
Product (1 = yes)    0.2***    0.2***
   (0.0478)    (0.0503)
Retained 0.01 0.008 − 0.002 − 0.02 − 0.03 − 0.03
(0.0699) (0.0705) (0.0700) (0.0731) (0.0735) (0.0733)
Size (small)
 Medium 0.2*** 0.2*** 0.3*** 0.2*** 0.2*** 0.2***
(0.0506) (0.0508) (0.0508) (0.0530) (0.0532) (0.0533)
 Large 0.6*** 0.6*** 0.7*** 0.6*** 0.6*** 0.6***
(0.0698) (0.0701) (0.0702) (0.0732) (0.0734) (0.0735)
lnAge 0.1*** 0.1*** 0.1*** 0.1*** 0.1*** 0.1***
(0.0321) (0.0325) (0.0325) (0.0331) (0.0336) (0.0335)
lnMexperience 0.05 0.05 0.05 0.05 0.05 0.05
(0.0346) (0.0350) (0.0349) (0.0356) (0.0360) (0.0359)
Foreign (1 = yes) 0.4*** 0.4*** 0.4*** 0.4*** 0.4*** 0.4***
(0.0650) (0.0657) (0.0654) (0.0677) (0.0685) (0.0680)
Government (1 = yes) − 0.7*** − 0.7*** − 0.7*** − 0.6*** − 0.7*** − 0.7***
(0.128) (0.131) (0.129) (0.134) (0.137) (0.135)
Millioncity (1 = yes) 0.3*** 0.3*** 0.3*** 0.3*** 0.3*** 0.3***
(0.0510) (0.0513) (0.0512) (0.0526) (0.0529) (0.0528)
Exporting (1 = yes) 0.1* 0.1* 0.1* 0.1* 0.1* 0.1*
(0.0565) (0.0569) (0.0565) (0.0588) (0.0591) (0.0588)
Electricity     − 0.07 − 0.07 − 0.06
    (0.0529) (0.0530) (0.0532)
Bureaucracy     − 0.0007 − 0.0005 − 0.0004
    (0.000949) (0.000951) (0.000954)
Bribe     − 0.008+ − 0.007+ − 0.008+
    (0.00399) (0.00404) (0.00403)
Competition (1 = yes)     − 0.06 − 0.06 − 0.06
    (0.0464) (0.0467) (0.0465)
Country fixed effects Yes Yes Yes Yes Yes Yes
ISIC fixed effects Yes Yes Yes Yes Yes Yes
Constant 8.4*** 8.5*** 8.5*** 8.6*** 8.6*** 8.7***
(0.132) (0.133) (0.131) (0.146) (0.147) (0.146)
N 5889 5824 5865 5442 5386 5423
R 2 0.397 0.396 0.393 0.399 0.398 0.395
Adj. R2 0.391 0.390 0.388 0.392 0.391 0.389
  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 < 0.001
  2. Source: Authors’ own computation based on WBES, 2018