Relationship between innovative activities and business results

This paper seeks to study the relationship between R&D, innovation results and business results in the food and beverage industry of Colombia. On the basis of the theoretical model of Gómez (2009), a binomial probit with selection and a multivariate probit model in two phases was estimated. The results show that R&D investment is significant to explain product innovation, but it's not decisive for process innovation, in line with the tendencies of the sector. On the other hand, the joint probability of performing R&D and both types of technological innovation positively affects the probability of achieving sales of innovative products in the domestic market and the probability to export. However, the marginal probability of advancing process innovation has no significance on sales of novel products.