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Obstacles of the ecuadorian and argentine manufacturing sector: Empirical evidence from innovative enterprises

Abstract:

This paper presents the obstacles perceived by manufacturing enterprises in Argentina and Ecuador that innovated in the product and the process in their business activities. The 2017 World Bank Enterprise Surveys database was used applying a Pearson chi2 analysis and a probit model to a sample of 103 Ecuadorian enterprises and 644 Argentine enterprises. Political instability, financing, labor regulations, and inadequate labor force are constraints for Argentine enterprises. The limiting factors associated with innovation in the process are, in the Ecuadorian case, corruption in enterprises; in the Argentine case are crime, theft and disorder, and labor regulations.