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This paper adapts the Crepon, Duguet, and Mairesse (1998) approach to estimate the relationship between innovation and productivity and the realities of innovative activities in developing countries. Panel data for Argentina during the period 1998-2004 to estimate a structural model in which different types of firms` innovative behavior—including in-house activities and the incorporation of external technologies—feeds into the probability of achieving successful results in product and process innovation, which in turn explains labor productivity. The endogeneity of this three-stage process is controlled for. The results suggest that all types of innovative activities are relevant to explain success in product and process innovation, and both are important factors to explain labor productivity. Moreover, investing systematically in R and D implies an extra payoff in labor productivity. These results suggest that investing in different types of innovative activities—and not only in R and D—and doing in-house activities systematically contribute to firms` innovative and economic performance.
This study examines the determinants of technological innovation and its impact on firm labor productivity across six Latin American countries (Argentina, Chile, Colombia, Costa Rica, Panama, and Uruguay) using micro data from innovation surveys. In line with the literature, in all countries firms that invest in knowledge are more able to introduce new technological advances, and those that innova ... (View publication)
This paper analyzes quantitative findings on the innovative behavior of firms in the production chains of pisco and shoe manufacture in Peru, which are served by the network of Technological Innovation Centers (CITEs), the most important technology policy instrument available in Peru. These two chains, in low and medium-technology industries, are representative of Peru’s manufacturing sector. O ... (View publication)
This paper estimates the impact of two productive development programs (PDPs) in Costa Rica: PROPYME and CR Provee. The first seeks to increase the capacity of small and medium-sized firms (SMEs) to innovate, and the second aims to increase backward linkages between Costa Rican SMEs and multinational companies operating in the country. The impacts of each program were measured in terms of three re ... (View publication)
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