External sources of techonological innovation in Chilean manufacturating industry
AbstractThere are several arguments in the literature regarding that more open economies would grow faster in the long term. Nevertheless, the channels through which openness increases growth have not been clearly identified in empirical analysis. In this article, we study if outward orientation variables have a positive impact on technological innovation, which is one of the most important sources of productivity growth. Using microeconomic data for Chilean manufacturing industry, we identify the effect of three main mechanisms of technological absorption: exports, direct foreign investment and purchase of foreign technical licenses. The results suggest that exports increase significantly technological innovation. In addition, we found causality in both ways. Technological innovation increases the probability of exporting. The other two channels; direct foreign investment and technical licenses, would be less important, because they only affect a reduced number of technological innovation indicators.
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Bibliographic InfoArticle provided by University of Chile, Department of Economics in its journal Estudios de Economia.
Volume (Year): 28 (2001)
Issue (Month): 1 Year 2001 (June)
Innovation; technological absorption; productivity.;
Find related papers by JEL classification:
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
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