Non-Technological Innovations in Chilean Agricultural Firms: What Motivates the Decision to Innovate and the Propensity of Innovation?

Abstract:

Innovations are divided into four types: product, process, marketing and organizational (OECD, 2007). An extensive body of literature on the introduction of technological innovations in Chilean agricultural firms focuses on PP (product and process), but it is very limited with respect to groups of firms and non-technological innovations (MO, marketing and organization). The main objective of this article is to estimate the decision to innovate and the propensity to innovate in non-technological domains in Chilean agricultural firms. A zero-inflated count model is used to estimate, in a combined fashion, both innovation decisions and the propensity to innovate. Two versions of the Encuesta Nacional de Innovación (National Innovation Survey) were merged (2010 and 2012), and 403 agricultural firms were identified. Among the main results, the number of employees and the level of imports are found to positively impact the propensity to innovate in MO. Variables such as cooperation and networking with customers and suppliers are found to help push Chilean agricultural firms into innovative activity.