Evaluation of Innovation Capacity and its Impact on Sales in Ecuador's Manufacturing Sector: An Econometric Analysis

Abstract

The primary aim of this study is to evaluate the capacity for innovation and its impact on sales in manufacturing companies in Ecuador. This study used data from the Survey of Science, Technology, and Innovation Activities in Ecuador. Correlation and multiple linear regression analyses were also performed. These results align with economic theories and indicate a positive association between certain innovation and sales indicators. Insufficient R&D investment negatively affects the innovation status of companies of various sizes in Ecuador. This study suggests that businesses ought to foster a culture of innovation, facilitate collaboration and strategic partnerships, and increase their financial resources for innovation and sales to achieve growth, survival, and sustainability in the current market.

Received: 20 March 2024 / Accepted: 19 June 2024 / Published: 02 July 2024