Innovation and competition perception: evidence from Egyptian manufacturing firms
Résumé
Abstract This paper studies the effect of competition perception on firm innovation. We use a recently collected dataset, the Egyptian Industrial Firm Behavior Survey from 2020 to 2021, to analyze a broad range of innovation activities, namely innovation input (R&D) and innovation output (product, machines, design, marketing, and process innovation). We will empirically assess how competition perception affects different types of innovation activities. The study employs an extended probit model with instrumental variables to account for the endogeneity problem inherent in studying the effect of competition on innovation. Furthermore, the analysis controls for reverse causality and heterogeneity across firms (by governorate, and sector). The results show that the effect of the perception of competition and innovation depends on the type of innovative activity. Specifically, the perception of informal competition negatively affects R&D innovation, while the perception of formal competition positively drives innovation outputs as product and marketing innovation. However, our findings suggest that competitive pressure has a limited or negligible effect on firms’ propensity to innovate in process improvements or machinery upgrades. The results also reveal pronounced sectoral heterogeneity, indicating that the effect of competition perception varies significantly across industries. These results are used to derive crucial policy implications regarding the importance of competition perception for fostering innovation among manufacturing firms in the Egyptian context.
Citer ce document
Accès au document
Texte intégral en lecture en ligne, réservé aux abonnés SPHAERO et aux membres de l'institution. Se connecter
Voir l'article sur le site de la revueAuteur(s)
Statistiques
Consultations : 1
Téléchargements : 0