Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/213564 
Year of Publication: 
2020
Series/Report no.: 
GLO Discussion Paper No. 466
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
We examine the determinants of product, process, and organizational innovation, and their impact on firm labor productivity using data from a unique innovation survey of firms in Pakistan. We find significant heterogeneity in the impact of different innovations on labor productivity: Organizational innovation has the largest effect followed by process innovation. But unlike much of the literature, we found a negative impact of product innovation suggesting a disruption effect of new products; however, this is mitigated if new products are paired with process or organizational innovations. We find a strong impact of engaging in knowledge creation on product and process innovation. We found that external knowledge networks and innovation cooperation play no significant role in firms’ decision to perform R&D and its intensity, though vertical linkages with suppliers (clients) promote product (process) innovations. Foreign competition has a negative effect on product innovation and a positive effect on organizational innovation.
Subjects: 
Technological Innovation
organizational innovation
labor productivity
developing countries
Labor intensive industries
JEL: 
O31
O32
L25
L67
C31
C24
D22
Document Type: 
Working Paper

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