Blinder-Oaxaca Approach to Identify Innovation Differences in Transition Countries

By the use of firm-level data coming from the Business Environment and Enterprise Performance Survey (BEEPS V) conducted in 2012–2014, this paper aims to investigate the sources of the possible gender ownership gap in innovativeness in a set of Transition economies. Through the Blinder-Oaxaca decomposition that allows us to define the factors responsible for the differences in the propensity to innovate between female-owned and male-owned firms, we find that the innovation disparity between firms with females among their owners and those having only male owners is mainly due to the differences in endowment effects. Tangible and intangible assets affect the innovation gap between the two groups of firms.

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