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Innovation and Productivity in Services: Evidence from Chile

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  • 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.

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  • 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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    2. Ugur, Mehment & Vivarelli, Marco, 2020. "The role of innovation in industrial dynamics and productivity growth: a survey of the literature," GLO Discussion Paper Series 648, Global Labor Organization (GLO).
    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. 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).
    7. 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.
    8. 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).
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. Morris, Diego M., 2018. "Innovation and productivity among heterogeneous firms," Research Policy, Elsevier, vol. 47(10), pages 1918-1932.
    14. 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.
    15. 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.
    16. 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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