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Determinants of Innovation and Productivity in the Service Sector in Mexico

Author

Listed:
  • Claudia De Fuentes
  • Gabriela Dutrenit
  • Fernando Santiago
  • Natalia Gras

Abstract

Drawing on survey data about firms in Mexico, we investigate the determinants of innovation and the linkages between innovation and productivity in the services sector. We apply a three-stage Crépon-Duguet-Mairesse (CDM) econometric model; the use of manufacturing firms as a benchmark helps to better appreciate our findings. We find that a series of structural, performance, and behavioral factors increase a firm’s propensity to invest in innovation, but some differences arise between services and manufacturing firms. Intensive investment in innovation leads to superior innovation performance, while innovation output has a positive effect on labor productivity.

Suggested Citation

  • Claudia De Fuentes & Gabriela Dutrenit & Fernando Santiago & Natalia Gras, 2015. "Determinants of Innovation and Productivity in the Service Sector in Mexico," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(3), pages 578-592, May.
  • Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:578-592
    DOI: 10.1080/1540496X.2015.1026693
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    Cited by:

    1. Mascarini, Suelene & Garcia , Renato & Roselino , José Eduardo, 2019. "Analysis of the effect of territorial factors on regional innovation in the state of São Paulo, Brazil," Revista Brasileira de Estudos Regionais e Urbanos, Associação Brasileira de Estudos Regionais e Urbanos (ABER), vol. 13(2), pages 183-200, October.
    2. Zahler, Andrés & Goya, Daniel & Caamaño, Matías, 2022. "The primacy of demand and financial obstacles in hindering innovation," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    3. Alarcón, José Carlos & Aguilar, Rocio & Galán, Jose Luis, 2019. "Determinants of innovation output in Spanish knowledge-intensive service firms: Stability analysis throughout the economic crisis of 2008," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 228-244.
    4. Dziallas, Marisa & Blind, Knut, 2019. "Innovation indicators throughout the innovation process: An extensive literature analysis," Technovation, Elsevier, vol. 80, pages 3-29.
    5. Elías Humberto Peraza Castaneda & Guillermo Aleixandre Mendizábal, 2021. "Innovation Behavior of Salvadoran Food & Beverage Industry Firms," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 13(2), pages 439-472, August.
    6. Fedyunina, Anna & Radosevic, Slavo, 2022. "The relationship between R&D, innovation and productivity in emerging economies: CDM model and alternatives," Economic Systems, Elsevier, vol. 46(3).
    7. Nikolay Chichkanov & Ian Miles & Veronika Belousova, 2019. "Conditions For Innovation In Kibs: Evidence From Russia," HSE Working papers WP BRP 92/STI/2019, National Research University Higher School of Economics.
    8. Vargas, F. & Guillard, Charlotte & Salazar, Monica & Crespi, G.A., 2022. "Harmonized Latin American innovation Surveys Database (LAIS)," MERIT Working Papers 2022-020, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Lee, Sungjoo & Lee, Hakyeon & Lee, Changyong, 2020. "Open innovation at the national level: Towards a global innovation system," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    10. Carolina Pasciaroni & Andrea Barbero, 2019. "Desempeño Innovador y Cooperación. Una Aplicación De La Técnica Oxaca Blinder," Asociación Argentina de Economía Política: Working Papers 4184, Asociación Argentina de Economía Política.
    11. Sunyoung Park, 2019. "Identification of Overall Innovation Behavior by Using a Decision Tree: The Case of a Korean Manufacturer," Sustainability, MDPI, vol. 11(22), pages 1-54, November.
    12. Mueller, Christoph E., 2023. "Explaining the stage of product in pre-seed academic startup ventures: An empirical analysis using monitoring data from a German startup support program," Journal of Business Venturing Insights, Elsevier, vol. 19(C).
    13. Edeh, Jude N. & Acedo, Francisco J., 2021. "External supports, innovation efforts and productivity: Estimation of a CDM model for small firms in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    14. Andonova, Veneta & Losada-Otálora, Mauricio, 2020. "Understanding the interplay between brand and innovation orientation: Evidence from emerging multinationals," Journal of Business Research, Elsevier, vol. 119(C), pages 540-552.

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