Services and Innovation for the Competitiveness of the Ecuadorian Economy
Ecuador is one of the least diversified countries in Latin America and the Caribbean, depending heavily on oil and agriculture. This policy paper examines how services and innovation can play a role in transforming the Ecuadorian economy from one b...
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| Format: | Working Paper |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/07/26597565/services-innovation-competitiveness-ecuadorian-economy http://hdl.handle.net/10986/24848 |
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okr-10986-248482021-04-23T14:04:27Z Services and Innovation for the Competitiveness of the Ecuadorian Economy Rubalcaba, Luis Gago, David Ariano, Maria Tripathi, Arvind services innovation competitiveness trade investment climate Ecuador is one of the least diversified countries in Latin America and the Caribbean, depending heavily on oil and agriculture. This policy paper examines how services and innovation can play a role in transforming the Ecuadorian economy from one based on natural resources to one based on knowledge and services. The paper assesses the performance of the services sector and its contribution to other sectors. The paper shows that services make a significant contribution to the country's economic growth (albeit below the average for the region). However, the services sector in Ecuador performs poorly in productivity and trade competitiveness. Further, services do not add enough value for export providers and users over time. The deficit in the integration of business services, especially knowledge-intensive business services, is particularly high, affecting the competiveness of all sectors and their value chains. Among the drivers of productivity and competitiveness, innovation is the key quality and differentiation factor (as distinguished from price-related, regulatory, and competition factors). Innovation in Ecuadorian services firms does not significantly affect performance (for example, sales and exports), although innovation in manufacturing does improve the performance of manufacturing firms. Finally, the paper provides some conclusions and meaningful crosscutting policy recommendations for a services-related policy aimed at fostering competitiveness and innovation. Services need action in innovation policy (innovation programs could be better adapted to services innovation specificities), but also in areas such as coordination at the institutional level; internationalization and foreign direct investment; and quality, regulatory, and competition issues affecting the investment climate. 2016-08-09T21:26:25Z 2016-08-09T21:26:25Z 2016-07 Working Paper http://documents.worldbank.org/curated/en/2016/07/26597565/services-innovation-competitiveness-ecuadorian-economy http://hdl.handle.net/10986/24848 English en_US Policy Research Working Paper;No. 7767 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Ecuador |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
services innovation competitiveness trade investment climate |
| spellingShingle |
services innovation competitiveness trade investment climate Rubalcaba, Luis Gago, David Ariano, Maria Tripathi, Arvind Services and Innovation for the Competitiveness of the Ecuadorian Economy |
| geographic_facet |
Latin America & Caribbean Ecuador |
| relation |
Policy Research Working Paper;No. 7767 |
| description |
Ecuador is one of the least diversified
countries in Latin America and the Caribbean, depending
heavily on oil and agriculture. This policy paper examines
how services and innovation can play a role in transforming
the Ecuadorian economy from one based on natural resources
to one based on knowledge and services. The paper assesses
the performance of the services sector and its contribution
to other sectors. The paper shows that services make a
significant contribution to the country's economic
growth (albeit below the average for the region). However,
the services sector in Ecuador performs poorly in
productivity and trade competitiveness. Further, services do
not add enough value for export providers and users over
time. The deficit in the integration of business services,
especially knowledge-intensive business services, is
particularly high, affecting the competiveness of all
sectors and their value chains. Among the drivers of
productivity and competitiveness, innovation is the key
quality and differentiation factor (as distinguished from
price-related, regulatory, and competition factors).
Innovation in Ecuadorian services firms does not
significantly affect performance (for example, sales and
exports), although innovation in manufacturing does improve
the performance of manufacturing firms. Finally, the paper
provides some conclusions and meaningful crosscutting policy
recommendations for a services-related policy aimed at
fostering competitiveness and innovation. Services need
action in innovation policy (innovation programs could be
better adapted to services innovation specificities), but
also in areas such as coordination at the institutional
level; internationalization and foreign direct investment;
and quality, regulatory, and competition issues affecting
the investment climate. |
| format |
Working Paper |
| author |
Rubalcaba, Luis Gago, David Ariano, Maria Tripathi, Arvind |
| author_facet |
Rubalcaba, Luis Gago, David Ariano, Maria Tripathi, Arvind |
| author_sort |
Rubalcaba, Luis |
| title |
Services and Innovation for the Competitiveness of the Ecuadorian Economy |
| title_short |
Services and Innovation for the Competitiveness of the Ecuadorian Economy |
| title_full |
Services and Innovation for the Competitiveness of the Ecuadorian Economy |
| title_fullStr |
Services and Innovation for the Competitiveness of the Ecuadorian Economy |
| title_full_unstemmed |
Services and Innovation for the Competitiveness of the Ecuadorian Economy |
| title_sort |
services and innovation for the competitiveness of the ecuadorian economy |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/07/26597565/services-innovation-competitiveness-ecuadorian-economy http://hdl.handle.net/10986/24848 |
| _version_ |
1764457812996390912 |