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The role of research and innovation in promoting productivity in chile

  • Jose Miguel Benavente

This paper continues the empirical research line started by Crepon et al. (Crepon, B., Duguet, E. and Mairesse, J. (1998) Research, Innovation, and Productivity: An Econometric Analysis at the Firm Level. Economics of Innovation and New Technology, 7(2), 115-158.) about the impact of research and development on innovation and innovation on productivity of firms. In this paper, we estimate a structural model using asymptotic least squares, which corrects for selectivity and simultaneity biases taking into consideration the particular characteristics of the available data. We find that most of the Schumpeterian hypotheses are confirmed: research and innovative activities are related with firm size and market power. However, in the case of Chile, firms' productivity is not affected by innovative results, nor by research expenditures in the short run.

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Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 15 (2006)
Issue (Month): 4-5 ()
Pages: 301-315

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Handle: RePEc:taf:ecinnt:v:15:y:2006:i:4-5:p:301-315
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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. Cohen, Wesley M & Klepper, Steven, 1996. "A Reprise of Size and R&D," Economic Journal, Royal Economic Society, vol. 106(437), pages 925-51, July.
  3. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation, and Productivity: An Econometric Analysis at the Firm Level," NBER Working Papers 6696, National Bureau of Economic Research, Inc.
  4. repec:fth:inseep:9833 is not listed on IDEAS
  5. Pagan, Adrian & Vella, Frank, 1989. "Diagnostic Tests for Models Based on Individual Data: A Survey," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(S), pages S29-59, Supplemen.
  6. Bera, Anil K & Jarque, Carlos M & Lee, Lung-Fei, 1984. "Testing the Normality Assumption in Limited Dependent Variable Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(3), pages 563-78, October.
  7. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107 Elsevier.
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