IMPACT OF INNOVATION ACTIVITIES ON SALES OF PERUVIAN COMPANIES IN LIMA AND CALLAO

Abstract

This research sought to demonstrate the validity of the use of the LASSO machine learning tool considering nine innovation activities and data from the survey of the Peruvian Ministry of Production, to explain the business performance of Peruvian companies located in the urban area of Lima and Callao. LASSO was applied and identified the most important variables, then Logit regressions were performed selecting those that had support in the theory; finally, it was found that the variables that increase the probability of improvement in sales are three: (a) innovation activities in capital goods, (b) marketing, and (c) intangible assets