Determinants of the economy of innovation in the commerce sector in Ecuador

Abstract

The Ecuadorian economy has shown greater relevance with the implementation of innovation focused on its economic sectors, this being a determinant that promotes economic growth. Industrialized and developed countries present a modern economy, which generates wealth with the application of innovation in new or improved products, processes, organization, and market. The main objective of this research is to analyze the impact of the factors of innovation economy within the commerce sector, both in 2019 and 2020. The main objective of this research is to determine the factors of innovation in the Commerce Sector. This study is explanatory with a mixed approach and management of secondary sources from the National Institute of Statistics and Census (INEC), the Business Structural Survey (ENESEM) and the Central Bank of Ecuador (BCE). The object of study is the trade sector: the activity of wholesale and retail trade, repair of motor vehicles and motorcycles belonging to section G; We work with a sample of 1,883 companies for the study years from 2019 to 2020. A fixed effects regression model is applied to analyze the factors that affect the economy of innovation, which explains the investment made in activities of R&D based on the explanatory variables that address dimensions such as: internal factors of companies, financing and human resources. Finally, the research establishes the existence of determinants that influenced the economy of innovation in the Ecuadorian trade sector, such as: business size, the acquisition of machinery, equipment, and the total liabilities of the organizations.