Research Article

How Does Competitive Environment Affect Firm Innovation in Latin America and the Caribbean?

Number: 91 October 27, 2026
TR EN

How Does Competitive Environment Affect Firm Innovation in Latin America and the Caribbean?

Abstract

Competition is considered an important factor shaping firm innovation. However, most studies on Latin America and the Caribbean (LAC) have focused on the relationship between innovation and productivity, while empirical evidence on how competition affects firm innovation remains limited and largely confined to specific countries. This study examines the role of the competitive environment in firm innovation across the region by considering three measures of competitive conditions: informal market competition, product market competition intensity, and market power. Using firm-level data from 14 countries drawn from the World Bank Enterprise Surveys (WBES), the analysis employs probit, logit, and instrumental variable probit models. The findings show that informal competition and market power foster firm innovation, while product market competition hinders it.

Keywords

References

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  7. Aghion, P., Harris, C., Howitt, P., & Vickers, J. (2001). Competition, imitation and growth with step-by-step innovation. The Review of Economic Studies, 68(3), 467-492.
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Details

Primary Language

English

Subjects

Theory of Economy, Industrial Economy

Journal Section

Research Article

Publication Date

October 27, 2026

Submission Date

May 1, 2026

Acceptance Date

October 24, 2026

Published in Issue

Year 2026 Number: 91

APA
Özer Burhan, P. (2026). How Does Competitive Environment Affect Firm Innovation in Latin America and the Caribbean? Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, 91, 258-286. https://doi.org/10.51290/dpusbe.1941826
AMA
1.Özer Burhan P. How Does Competitive Environment Affect Firm Innovation in Latin America and the Caribbean? Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. 2026;(91):258-286. doi:10.51290/dpusbe.1941826
Chicago
Özer Burhan, Pınar. 2026. “How Does Competitive Environment Affect Firm Innovation in Latin America and the Caribbean?”. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, nos. 91: 258-86. https://doi.org/10.51290/dpusbe.1941826.
EndNote
Özer Burhan P (October 1, 2026) How Does Competitive Environment Affect Firm Innovation in Latin America and the Caribbean? Dumlupınar Üniversitesi Sosyal Bilimler Dergisi 91 258–286.
IEEE
[1]P. Özer Burhan, “How Does Competitive Environment Affect Firm Innovation in Latin America and the Caribbean?”, Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, no. 91, pp. 258–286, Oct. 2026, doi: 10.51290/dpusbe.1941826.
ISNAD
Özer Burhan, Pınar. “How Does Competitive Environment Affect Firm Innovation in Latin America and the Caribbean?”. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. 91 (October 1, 2026): 258-286. https://doi.org/10.51290/dpusbe.1941826.
JAMA
1.Özer Burhan P. How Does Competitive Environment Affect Firm Innovation in Latin America and the Caribbean? Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. 2026;:258–286.
MLA
Özer Burhan, Pınar. “How Does Competitive Environment Affect Firm Innovation in Latin America and the Caribbean?”. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, no. 91, Oct. 2026, pp. 258-86, doi:10.51290/dpusbe.1941826.
Vancouver
1.Pınar Özer Burhan. How Does Competitive Environment Affect Firm Innovation in Latin America and the Caribbean? Dumlupınar Üniversitesi Sosyal Bilimler Dergisi. 2026 Oct. 1;(91):258-86. doi:10.51290/dpusbe.1941826