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Innovation, R&D Investment and Productivity in Chile

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  • Roberto Alvarez
  • Claudio Bravo Ortega
  • Lucas Navarro

Abstract

This paper uses two sources of information and different methodologies to analyze the causal effect of product and process innovation on productivity in the Chilean manufacturing industry during the past decade. In general, the evidence suggests there is not a contemporaneous effect of product innovation on productivity, but there is a positive effect of process innovation. This not significant effect of product innovation contrasts with evidence of studies for other countries. However, the results show the presence of lagged effects product innovation on productivity two years after innovation. Compared with the case of developed countries, this evidence might be consistent with a very slow process of -learning by doing- on the part of Chilean firms with regard to mastering new technologies. These slow and frequently uncertain gains in productivity could help to explain the low levels of investment in research and development (R and D) activities by Chilean firms.

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Bibliographic Info

Paper provided by Inter-American Development Bank in its series IDB Publications with number 44318.

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Date of creation: Oct 2010
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Handle: RePEc:idb:brikps:44318

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Keywords: Productivity; Investment; Innovation; Research & Development; technological innovations; industrial productivity; industrial research; R&D; Chile; Productivity; Innovation;

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References

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  1. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
  2. Luis A. Rivera-Batiz & Paul M. Romer, 1991. "International Trade with Endogenous Technological Change," NBER Working Papers 3594, National Bureau of Economic Research, Inc.
  3. Jan De Loecker, 2004. "Do Exports Generate Higher Productivity? Evidence from Slovenia," LICOS Discussion Papers 15104, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
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Cited by:
  1. Gustavo Crespi & Pluvia Zuñiga, 2010. "Innovation and Productivity: Evidence from Six Latin American Countries," IDB Publications 6875, Inter-American Development Bank.

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