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Innovation, R and D investment and productivity in Chile

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  • Alvarez, Roberto
  • Bravo-Ortega, Claudio
  • Navarro, Lucas

Abstract

This paper studies the relationships between investment in research and development (R&D), innovation and productivity in the Chilean manufacturing industry using data from four waves of the national Technological Innovation Survey during the past decade. The analysis is based on a multi-equation model that takes into account the whole process of innovation, considering the determinants of firms' decisions to engage in innovation activities, the results of those efforts in terms of innovation and their impact on productivity. It is found that: (a) larger plants are more likely to invest in R&D, (b) R&D intensity increases the probability of process innovation, (c) R&D intensity does not affect the probability of product innovation, (d) low appropriability reduces the probability of process innovation, (e) larger firms are more likely to introduce product innovation, and (f) process innovation increases productivity.

Suggested Citation

  • Alvarez, Roberto & Bravo-Ortega, Claudio & Navarro, Lucas, 2011. "Innovation, R and D investment and productivity in Chile," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    • Handle: RePEc:ecr:col070:11507
    Note: Includes bibliography
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    1. Francisco L. Rivera-Batiz & Luis A. Rivera-Batiz, 2018. "International Trade with Endogenous Technological Change," World Scientific Book Chapters, in: Francisco L Rivera-Batiz & Luis A Rivera-Batiz (ed.), International Trade, Capital Flows and Economic Development, chapter 2, pages 33-70, World Scientific Publishing Co. Pte. Ltd..
    2. Pakes, Ariel & Griliches, Zvi, 1980. "Patents and R&D at the firm level: A first report," Economics Letters, Elsevier, vol. 5(4), pages 377-381.
    3. Roberto Alvarez & Claudio Bravo-Ortega & Lucas Navarro, 2010. "Innovation, R&D Investment and Productivity in Chile," Research Department Publications 4691, Inter-American Development Bank, Research Department.
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    1. Betarelli Junior, Admir Antonio & Faria, Weslem Rodrigues & Gonçalves Montenegro, Rosa Livia & Bahia, Domitila Santos & Gonçalves, Eduardo, 2020. "Research and development, productive structure and economic effects: Assessing the role of public financing in Brazil," Economic Modelling, Elsevier, vol. 90(C), pages 235-253.

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