Can innovation predict regional resilience? An econometric exploration of Brazilian municipalities during the Covid-19 pandemic

Câmara Viana, Luiz Fernando; Hoffmann, Valmir Emil; Pinto, Hugo

http://hdl.handle.net/10400.1/20695

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Authors

Câmara Viana, Luiz Fernando

Hoffmann, Valmir Emil

Pinto, Hugo

Abstract(s)

Objective: This article examines the relationship between innovation and regional economic resilience in an emerging economy. Method: This is a quantitative and descriptive research that uses a logistic regression based on socio-economic indicators of the 101 most populous Brazilian municipalities and considers regional resilience through employment data. Originality/relevance: Although innovation has been identified as a source of regional economic resilience, the context of emerging economies has often been overlooked, resulting in a narrow view of this relationship. Results: The findings show that innovation did not act as a classification variable for (non -)resilient regions. Municipalities characterized by greater proximity to ports, greater per capita Internet access, and the presence of technology parks showed less resilience during the Covid-19 pandemic compared to the national average performance, which is counterintuitive. In addition, a positive relationship was found between lower tax burden and regional resilience. Theoretical contribution: The empirical research conducted helps to understand the specific impact of a crisis such as the pandemic in an emerging economy. The results also suggest that innovation is not a sufficient condition for regional resilience in the short run. Practical contributions: The article points to the need to strengthen innovation capacities in regions of an emerging economy, which, if underdeveloped, are unable to act as an immune system in the face of a pandemic shock.