LATEST PUBLICATIONS
PIDS Book 2021-01
Revitalizing Philippine Irrigation: A Systems and Governance Assessment for the 21st Century
DP 2020-59
Giving Cash to the Poor: A Study of Pantawid Pamilya Cash Grants Generosity, Frequency, and Modality
DP 2020-58
Exploring the Feasibility of Content Analysis in Understanding International Cooperation in APEC
DP 2020-57
Correlates of Test Performance of 15-year-old Students in the Philippines: Evidence from PISA
Publication Detail
DP 2018-09: Assessing the Effects of Simple and Complex Innovation Strategies on the Performance of Firms in the Philippines

Innovation is the synergistic use of resources, technology, capital, and information to achieve growth at different levels of the economy. Many studies abroad have already supported the hypothesis that innovation leads to a good firm performance and long-term economic growth. In the Philippines, some studies already analyzed the effects of simple innovations on firm performance. However, emerging literature shows that complex innovation strategies have bigger impacts than simple ones. This paper analyzes the effects of simple and complex innovations on labor productivity and employment growth. Results show that there is no single best innovation strategy that a firm must undertake. However, if firms are constrained by their budget, a simple innovation will help in improving labor productivity and, to some extent, employment growth. Firms that do not face cost issues can benefit more from adopting a complex innovation strategy. In addition, several specific types of complex innovation strategies can be adapted depending on whether the firm aims to increase its employment or to boost its labor productivity.

Philippine Institute for Development Studies
Authors Keywords
Connie Bayudan-Dacuycuy; Lora Kryz C. Baje; labor productivity; Philippines; innovation; employment growth; simple innovation; complex innovation;
Download PDF Number of Downloads
Published in 2018 and available in the PIDS Library or can be downloaded as full text Downloaded 5,585 times since August 16, 2018