This study examines the relationships between gender and R&D, innovation, and productivity within Egyptian firms, leveraging panel data from 2013, 2016, and 2020. We explore whether female-led firms exhibit differences in productivity and innovation compared to their male-led counterparts. Going beyond most prior investigations, we allow for endogenous selection into innovation by incorporating instrumental variables within generalized structural equation models. Contrary to earlier findings, our results reveal that female-led firms are more likely to invest in R&D and innovate. Moreover, we show that female-led firms are as productive as male-led firms, challenging any notion of lower productivity among female-headed firms. In examining the links between R&D, innovation, and productivity, we identify that innovative and younger firms are more productive. R&D expenditure, younger age, foreign technology adoption, and formal training provision increase the likelihood of innovation. Finally, firms adopting foreign technology and those with access to finance are more prone to invest in R&D.
Research Associates
Amira El-Shal
Acting Associate Director of Research, J-PAL MENA
Research Associates
Eman Moustafa
Research Manager, African Export-Import Bank (Afreximbank)