Innovative Activity in the Caribbean: Drivers, Benefits, and Obstacles

Produced by: 
IPAG Business School
Available from: 
September 2014
Paper author(s): 
Preeya Mohan
Eric Strobl
Patrick Watson
Globalization - Trade
Microeconomics - Competition - Productivity

 We investigate the determinants of innovation and the benefits from it in making firms more productive in the Caribbean. To this end we use a rich firm level dataset covering 14 different countries and various non-parametric, semi- parametric and parametric statistical tools. Our results show that, while firms may be productive for many reasons, there are substantial productivity benefits resulting from investment in innovation. Moreover, these benefits do not appear to be particularly low compared to what prevails in other developing countries. However, there is some indication that factors that would normally encourage innovation investment, such as patent protection, public subsidies, or cooperation among innovators, may not bear fruit.


Research section: 
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