Looking at the literature on informality, one thing that stands out is the small size of the informal firms. In fact, firm-size is one of the criteria used by ILO and individual researchers to draw the line between formal and informal firms. Many informal firms, however defined, are operated by the owner herself or himself and without any other employees, with few having more than five employees.
Information on the situation prior to the outbreak of the crisis is critical for understanding the current situation in Ukraine. As far as economics is concerned, macro-economic data--such as income per capita and unemployment rates-- is definitely important but it does not necessarily capture various dimensions of the business climate and the actual experiences of private agents in dealing with the government. Other factors play a big role, for example, how often do firms pay bribes to obtain licenses and permits in Ukraine? Have these unofficial payments increased over time? In order to answer these questions, we must zero in on what actual firms really experience.
- Enterprise Surveys
The rewards of innovation for developing nations do not require much convincing. Poverty alleviation, faster economic growth, greater job creation, and higher worker remuneration are just some of the potential benefits. The idea of innovation as a key driver of development can be traced back to the seminal works of economists such as Joseph Schumpeter. Thus, it is no surprise that on July 30 and 31, 2013 a group of innovation leaders from 18 countries gathered in Santiago, Chile for the first pan Latin American Innovation Summit. The event was kicked off by Sebastian Piñera, then President of Chile, who had announced a national innovation budget of $1 billion. What about the private sector? An important driver of innovation is Research and Development (R & D) spending by businesses. Evidence shows that firms that invest in R&D and other innovation-related activities have higher productivity and are more capable of making technological advances than firms that do not. So, where do Latin American firms stand on R & D investment?