This study aims to investigate the determinants of innovation performance in technology-based firms (TBFs) located in regions with low research and development (R&D) intensity, using Colombia as an empirical case. It examines how internal capabilities and external ecosystem variables, such as venture capital (VC), contact networks, research capacity, policy support, technological infrastructure and human talent, shape two types of innovation outcomes: business process innovation and product innovation.
A quantitative, cross-sectional and correlational-explanatory design was used. Data were collected through a structured questionnaire from 63 TBFs supported by national innovation programs. Structural equation modeling (SEM) using SmartPLS was used to test the hypothesized model and assess direct relationships between the determinants and the two innovation dimensions.
The results indicate that technological infrastructure and research capacity are the strongest predictors of innovation outcomes. VC shows a positive effect on business process innovation but does not influence product innovation. Contact networks and human talent do not exhibit direct effects; however, human talent is closely associated with the formation of networks, suggesting that its contribution operates conditionally through relational and organizational mechanisms rather than as an independent input. Policy support does not directly affect innovation but exerts an indirect influence by enhancing access to VC and infrastructure.
The study is limited by its cross-sectional design and focus on a single national program, which may constrain generalizability. Future studies should adopt longitudinal and comparative approaches to capture contextual heterogeneity and incorporate moderating and mediating variables to provide a more nuanced understanding of innovation dynamics.
The findings provide guidance for policymakers and managers in resource-constrained regions. Strengthening technological infrastructure and research capacity emerges as essential to sustain both process and product innovation. Tailored financial instruments, such as venture or seed capital, should prioritize efficiency improvements while enabling firms to advance toward market-oriented outputs. Policies can indirectly enhance innovation by facilitating access to capital and infrastructure rather than by acting as direct drivers. For managers, aligning human talent with collaborative networks is critical to leverage conditional contributions. Together, these strategies can foster more resilient and competitive TBFs.
The findings suggest that public policies fostering collaborative networks, strengthening research capacity and improving access to financing and infrastructure can play a pivotal role in supporting innovation, particularly in under-resourced regions.
This study contributes to the understanding of how internal capabilities and external enablers interact to shape innovation performance in emerging economies. By distinguishing between business process innovation and product innovation and applying SEM in a low-R&D context, it provides both theoretical insights and practical guidance for strengthening entrepreneurial ecosystems.
