Science and Technology Production
Article
Authorship
Romero-Alvarez, Yaneth Patricia
;
MARTINEZ, LISANA BELÉN
;
Pasciaroni, Carolina
;
Salas-Navarro, Katherinne
;
Zamora-Musa, Ronald
Date
2025
Publishing House and Editing Place
Springer
Magazine
Journal of Open Innovation: Technology, Market, and Complexity,
vol. 11
- ISSN 2199-8531
Springer
Springer
ISSN
2199-8531
Summary
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This paper examines how financing channels, capital structures, and asset investments influence innovationoutcomes in service-sector SMEs in Colombia. Despite extensive research on innovation finance, most studiesfocus on manufacturing firms in OECD economies, leaving a gap regarding the dynamics of service-sector SMEsin emerging markets. Using data from the national EDITS 2020–2021 survey, we analyze a sample of 384innovative firms through ordered logit models. The results show that inte...
This paper examines how financing channels, capital structures, and asset investments influence innovationoutcomes in service-sector SMEs in Colombia. Despite extensive research on innovation finance, most studiesfocus on manufacturing firms in OECD economies, leaving a gap regarding the dynamics of service-sector SMEsin emerging markets. Using data from the national EDITS 2020–2021 survey, we analyze a sample of 384innovative firms through ordered logit models. The results show that internal financing is the most frequentlyused channel but primarily sustains low levels of innovation, with limited effects on high-level outcomes. Publicfunding is positively associated with medium innovation but negatively linked to high innovation, while privateexternal funding follows a similar pattern. Cooperative financing has the strongest negative impact on advancedinnovation, highlighting the risks of informal financial mechanisms. Regarding asset composition, tangible investmentsfoster incremental and medium-level innovation, whereas intangible investments—such as R&D, skillsdevelopment, and organizational knowledge—significantly increase the probability of high innovation. Thesefindings contribute to the literature on innovation finance in emerging economies by demonstrating that resourcecomposition and institutional context critically condition SMEs’ innovation trajectories. From a policyperspective, the results suggest that supporting intangible assets, strengthening absorptive capacities, anddiversifying financial ecosystems beyond traditional credit lines are essential to enable SMEs in Colombia andsimilar contexts to transition from incremental to high-level innovation.
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Key Words
FUNDING CHANNELSCAPITAL STRUCTURESMESINNOVATION