  Using data from World Bank Enterprises Survey 2014, we find that having a
female owner in India increases firm innovation probability using both input
and output indicators of innovation. We account for possible endogeneity of
female owner variable using a two stage instrumental variable probit model. We
find that the positive effect of female owner variable is observed in the
sub-samples of firms with more access to internal funding, young firms and
firms located in regions with no or less crime This study highlights the need
to promote female entrepreneurship as a potential channel for promoting firm
innovation in India.
