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  • 1
    Language: English
    Pages: 1 Online-Ressource
    Series Statement: World Bank E-Library Archive
    Series Statement: Other papers
    Abstract: This practitioner's guide, a companion volume to The Innovation Paradox picks up where the previous report left off. It aims to help policy makers in developing countries better formulate innovation policies. It does so by providing a rigorous typology of innovation policy instruments, including evidence of impact-and more importantly, the critical conditions in terms of institutional capabilities to successfully implement these policy instruments in developing countries. The guide aims to help fill a knowledge gap by presenting not only leading-edge empirical evidence about and practical experience with innovation policy, but also systematically discussing the market and system failures that hold back innovation in developing countries
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  • 2
    Language: English
    Pages: 1 Online-Ressource (37 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Cirera, Xavier Taxing the Good? Distortions, Misallocation, and Productivity in Sub-Saharan Africa
    Abstract: This paper uses comprehensive and comparable firm-level manufacturing census data from four Sub-Saharan African countries to examine the extent, costs, and nature of within-industry resource misallocation across heterogeneous firms. The paper finds evidence of severe misallocation in which resources are diverted away from high-productivity firms toward low-productivity ones in all four countries, although the magnitude differs across countries. The paper shows that a hypothetical reallocation of resources that equalizes marginal returns across firms would increase manufacturing productivity by 31.4 percent in Cote d'Ivoire and as much as 162.7 percent in Kenya. The paper emphasizes the importance of the quality of the underlying data, by comparing the results against those from the World Bank Enterprise Surveys. The comparison finds that the survey-based results underestimate the extent of misallocation vis-a-vis the census. Finally, the paper finds that the size of existing distortions is correlated with various measures of business environment, such as lack of access to finance, corruption, and regulations
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 3
    Language: English
    Pages: 1 Online-Ressource (41 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Cirera, Xavier The Effects of Innovation on Employment in Developing Countries: Evidence from Enterprise Surveys
    Abstract: While existing evidence in advanced economies suggests a possible role for technological innovation in job creation, its role in developing countries remains largely undocumented. This paper sheds light on the direct impact of technological as well as organizational innovation on firm level employment growth based on the theoretical model of Harrison, Jaumandreu, Mairesse, and Peters (2014) using a sample of over 15,000 firms in Africa, South Asia, Middle East and North-Africa and Eastern Europe and Central Asia. The results suggest that new sales associated with product innovations tend to be produced with just as much or higher levels of labor intensity. The effect is largest in lower income countries and the African region, where firms are further away from the technological frontier. More importantly, process innovations that involve automation of production do not have a short-term negative impact on firm employment. However, there is some evidence of a negative effect of automation on employment that manifests in increases in efficiency that reduce the elasticity of new sales to employment. Overall, these results are qualitatively similar to previous findings in advanced economies and highlight a positive direct role of innovation on the quantity of employment but at a decreasing rate as firms' transition to the technological frontier
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 4
    Language: English
    Pages: 1 Online-Ressource (45 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Cirera, Xavier Measuring Firm-Level Innovation Using Short Questionnaires : Evidence from an Experiment
    Abstract: Little is known about innovation in developing countries, partly because of the lack of comparable and reliable data. Collecting data on firm-level innovation is challenging because of the subjective definition of what determines an innovation, a problem that is exacerbated in developing countries where innovation is likely to be more incremental and less radical. This paper contributes to the literature by presenting the results of an experiment aiming to identify the survey instrument that better captures firm-level innovation in developing countries. The paper shows that a small set of questions included in a multi-topic, firm-level survey does not provide an accurate picture of firm-level innovation and tends to overestimate innovation rates. Issues related to framing explain some of the unreliability of innovation responses, while cognitive problems do not appear to play a significant role
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 5
    Language: English
    Pages: 1 Online-Ressource (55 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Cirera, Xavier ICT Use, Innovation, and Productivity: Evidence from Sub-Saharan Africa
    Abstract: This paper examines empirically the links between adoption of information and communications technology (ICT), defined as usage by firms, innovation, and productivity using firm-level data for a sample of six Sub-Saharan African countries: the Democratic Republic of Congo (DRC), Ghana, Kenya, Tanzania, Uganda, and Zambia. Although adoption of information and communications technology in these countries is still lagging behind OECD countries, there is significant heterogeneity on adoption rates across the countries. Kenya has the largest adoption rate of computer, software, and Internet usage. The Democratic Republic of Congo and Tanzania experience lower adoption rates. The degree of internationalization of the firm, use of technology, and extent of competition are important factors explaining firm-level use of ICT. The results of the estimates suggest that ICT use is an important and robust enabler of product, process, and organization innovation across all six countries. However, the final impact on productivity depends on the degree of novelty of the innovation introduced by the firm
    URL: Volltext  (Deutschlandweit zugänglich)
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  • 6
    Language: English
    Pages: 1 Online-Ressource (120 pages)
    Series Statement: International Development in Focus
    Parallel Title: Erscheint auch als
    Keywords: Enterprenuership ; Firm Capacities ; Human Capital ; Innovation ; Productivity ; Public-Private Partnership ; STI Policies ; Sustain Growth ; Technology
    Abstract: Anew, innovation-led growth model would enable Argentina to increase economic stability and achieve stronger shared prosperity. Argentina can escape boom-and-bust cycles and accelerate its recovery from the COVID-19 pandemic with an innovation-driven economy that, in addition to factor accumulation, fuels higher productivity growth across all its sectors. Such a growth model should build on Argentina's strengths in human capital, research, and firm-level capabilities, which would help diversify the economy and make it more inclusive and less susceptible to external shocks, providing the country with a stronger buffer at times of uncertainty. Despite the volatility of the past few decades, Argentina has been able to develop important pockets of success in high-end research and in frontier productive sectors such as biotechnology and knowledge economy. All of these should be better exploited and strengthened through public-private partnerships, targeted investments, and an enabling business environment to increase innovation's contribution to economic growth. A resilient economic recovery will, in part, require a long-term vision and a policy framework that builds a sustainable national innovation system. To contribute to the strengthening of such a national innovation system, this report reviews holistically the innovation performance in Argentina, identifies some of the main gaps and strengths, and discusses appropriate policy responses. The report also examines regional differences in innovation performance and reviews the policy effectiveness of recent initiatives that have focused on industry and science linkages and knowledge-based entrepreneurship. The lessons from these impact evaluations and fi ndings of the comparative evaluation of Argentina's innovation landscape are intended to provide guidance in the design and strengthening of existing and future innovation policies in Argentina
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  • 7
    Language: English
    Pages: 1 Online-Ressource (1 pages)
    Series Statement: World Bank E-Library Archive
    Series Statement: Investment Climate Assessment
    Abstract: This technical note implements a firm-level productivity diagnostic using the census of manufacturing firms and a large services survey in Kenya. By using a number of stylized productivity indicators, we aim to identify the ability of Kenyan firms to grow. The information presented in this diagnostic will help to conduct evidence-based policy-making. Specifically, implementing firm-level productivity diagnostics provide the necessary information for (i) improving the targeting of economic policies, (ii) enhancing their effectiveness, (iii) making more accurate predictions of the effects of industry shocks and policy reforms on the economy, and (iv) understanding the behavior of macroeconomic variables by tracking the evolution of variables at the firm-level. This note shows that there is a lot of heterogeneity in firms' attributes and performance, and this can potentially be attributed to the presence of economic distortions that affect the efficient allocation of resources across firms, with the manufacturing sector showing a lackluster performance compared to the services sector. Overall, the findings highlight the importance of locating productivity at the center of the competitiveness agenda as a key instrument for employment creation and poverty reduction
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  • 8
    Language: English
    Pages: 1 Online-Ressource (240 pages)
    Parallel Title: Erscheint auch als
    Keywords: Climate Change ; Coronavirus ; Covid-19 ; Data Analysis ; Data Collection ; Technology ; Technology Adaptation
    Abstract: Many of the main problems facing developing countries today and tomorrow--growth, poverty reduction, inequality, food insecurity, job creation, recovery from the COVID-19 pandemic, and adjustment to climate change--hinge on adopting better technology, a key driver of economic development. Access to technology is not enough: firms have to adopt it. Yet it is precisely the uptake of technology that is lagging in many firms in developing countries. Bridging the Technological Divide: Technology Adoption by Firms in Developing Countries helps open the "black box" of technology adoption by firms. The seventh volume in the World Bank Productivity Project series, it will further both research and policy that can be used to support technology adoption by firms in developing countries
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  • 9
    Language: English
    Pages: 1 Online-Ressource (65 pages)
    Parallel Title: Erscheint auch als Abreha, Kaleb Girma Deconstructing the Missing Middle: Informality and Growth of Firms in Sub-Saharan Africa
    Keywords: Employment and Unemployment ; Endodgenous Informality ; Establishment Concensus ; Firm Size Distribution ; Inclusion of Informal Firms ; Informality ; Labor and Employment Law ; Law and Development ; Manufacturing ; Market Distortion ; Microenterprises ; Missing Middle ; Poverty Reduction ; Private Sector Development ; Small and Medium Size Enterprises
    Abstract: This paper characterizes the firm size distribution by exploiting establishment-level censuses covering both formal and informal firms in Sub-Saharan Africa. The paper finds a "missing middle" in the employment-based size distribution of firms in four Sub-Saharan African countries. This "missing middle" hinges on the inclusion of informal firms, and it is not explained by state- or foreign-owned firms at the top of the size distribution, nor does it emerge from the size distribution of entrants. The paper reconciles these empirical results with a model of firm dynamics with endogenous informality and shows that calibrated values of entry barriers and productivity-dependent idiosyncratic distortions generate a "missing middle" that is consistent with its underlying drivers in the data
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  • 10
    Language: English
    Pages: 1 Online-Ressource (40 pages)
    Parallel Title: Erscheint auch als Cirera, Xavier Technology and Resilience
    Keywords: Business Cycles and Stabilization Policies ; Common Carriers Industry ; Digital Technology ; Effects Of Technology ; Food and Beverage Industry ; General Manufacturing ; Industry ; Innovation and Entrepreneurship ; Macroeconomics and Economic Growth ; Nationally Representative Survey ; Supply Chain Management System ; Technology Index ; Urban Transport
    Abstract: This paper estimates the impact of technology sophistication pre-COVID-19 on the performance of firms during the early stages of the pandemic. It exploits a unique data set covering firms from Brazil, Senegal, and Vietnam, using a treatment effect mediation framework to decompose the results into direct and indirect effects. Increasing pre-pandemic technology sophistication by one standard deviation is associated with 3.8 percentage points higher sales. Both effects are positive, but the direct effect is about five times larger than the indirect effect. The total effect on sales is markedly nonlinear with significantly smaller estimates of the reduction in sales for firms with more sophisticated pre-pandemic technology. The results are robust to different measures of digital responses and matching estimators
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