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Innovation and Productivity in Services: Evidence from Chile

Author

Listed:
  • Roberto Álvarez
  • Claudio Bravo-Ortega
  • Andrés Zahler

Abstract

We analyze empirically the firm-level relationship between innovation and productivity in the Chilean service sector using the manufacturing sector as a benchmark. We find that manufacturing and service industries have similar determinants of the probability of introducing technological innovations. We also find a positive effect of technological and nontechnological innovation on labor productivity for both sectors. However, there are some differences in the quantitative importance of some determinants of innovation. Our findings help to characterize the different stages of the service industry’s innovative process and its effect on an emerging economy, providing useful information for policy design.

Suggested Citation

  • Roberto Álvarez & Claudio Bravo-Ortega & Andrés Zahler, 2015. "Innovation and Productivity in Services: Evidence from Chile," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(3), pages 593-611, May.
    • Handle: RePEc:mes:emfitr:v:51:y:2015:i:3:p:593-611
    DOI: 10.1080/1540496X.2015.1026696
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    Cited by:

    1. Juan Acevedo & Iván Díaz Molina, 2025. "Managers’ ambidexterity in startups’ CEOs: effect of transversal competencies in the balance of pursuing exploratory and exploitative innovation," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-25, December.
    2. Connie Bayudan-Dacuycuy & Lora Kryz C. Baje, 2018. "Assessing the Effects of Simple and Complex Innovation Strategies on the Performance of Firms in the Philippines," Working Papers id:12899, eSocialSciences.
    3. Cristian Mardones & Annabella Zapata, 2019. "Determinants of public funding for innovation in Chilean firms," Contaduría y Administración, Accounting and Management, vol. 64(1), pages 41-42, Enero-Mar.
    4. Mehmet Ugur & Marco Vivarelli, 2021. "Innovation, firm survival and productivity: the state of the art," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(5), pages 433-467, July.
    5. Caterina Santi & Pietro Santoleri, 2017. "Exploring the link between innovation and growth in Chilean firms," Small Business Economics, Springer, vol. 49(2), pages 445-467, August.
    6. Ugur, Mehmet & Vivarelli, Marco, 2020. "The role of innovation in industrial dynamics and productivity growth: a survey of the literature," MERIT Working Papers 2020-038, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Jacques Mairesse & Pierre Mohnen & Ad Notten, 2025. "Innovation and productivity: the recent empirical literature and the state of the art," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(1), pages 1-27, March.
    8. Crespi, G. & Tacsir, E. & Vargas, F., 2014. "Innovation and productivity in services: Empirical evidence from Latin America," MERIT Working Papers 2014-069, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    9. Elvis Korku Avenyo & Fiona Tregenna & Erika Kraemer-Mbula, 2021. "Do Productive Capabilities Affect Export Performance? Evidence from African Firms," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 304-329, April.
    10. Acevedo, Juan & Diaz-Molina, Iván & Johan, Sofia & Valenzuela, Patricio, 2023. "Business advisory services and innovation during crises: Evidence from small businesses in Chile," Journal of Business Research, Elsevier, vol. 168(C).
    11. Badeeb, Ramez Abubakr & Szulczyk, Kenneth R. & Zahra, Samia & Mukherjee, Tanusree Chakravarty, 2023. "Innovation dynamics in the natural resource curse hypothesis: A new perspective from BRICS countries," Resources Policy, Elsevier, vol. 81(C).
    12. Bykova, Anna & Jardon, Carlos M., 2017. "Lean against the wind: The moderation effect of foreign investments during the economic recession in Russia," Journal of Economics and Business, Elsevier, vol. 93(C), pages 1-14.
    13. Busom, Isabel & Vélez-Ospina, Jorge Andrés, 2017. "Innovation, Public Support, and Productivity in Colombia. A Cross-industry Comparison," World Development, Elsevier, vol. 99(C), pages 75-94.
    14. Josef Krause, 2016. "Evaluation Of The Impact Of Innovative Activites On Productivity – Example From The Czech Republic," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 13(2), pages 101-109, June.
    15. Yadav, Sanjeev & Samadhiya, Ashutosh & Kumar, Anil & Luthra, Sunil & Pandey, Krishan Kumar, 2024. "Nexus between fintech, green finance and natural resources management: Transition of BRICS nation industries from resource curse to resource blessed sustainable economies," Resources Policy, Elsevier, vol. 91(C).
    16. 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.
    17. Michael Asiedu & Nana Adwoa Anokye Effah & Benedict Arthur, 2024. "Innovation and Firm Productivity in Central America," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 4639-4672, March.
    18. Morris, Diego M., 2018. "Innovation and productivity among heterogeneous firms," Research Policy, Elsevier, vol. 47(10), pages 1918-1932.
    19. Roberto Álvarez, 2016. "The Impact of R&D and ICT Investment on Innovation and Productivity in Chilean Firms," Working Papers wp428, University of Chile, Department of Economics.
    20. Adam Cohen & Ricardo Raineri, 2025. "Extractives: challenges and opportunities for the south in the energy transition," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 38(2), pages 253-272, June.
    21. Joseph Dery Nyeadi & Victor Kunsofah Kunbuor & Ernest Domanaanmwi Ganaa, 2018. "Innovation and Firm Productivity: Empirical Evidence from Ghana," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(5), pages 127-140, OCTOBER.
    22. 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).

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