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Persistence and economic effects of technological innovations: a dynamic and sequential analysis of Uruguayan manufacturing firms

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  • Leonel Muinelo-Gallo
  • Macarena Suanes Martínez

Abstract

This paper analyzes the long-term relationship between research and development (R&D), innovations and productivity in 400 Uruguayan manufacturing firms during the period 2001–2009 based on a modified version of the structural model of Crepon, Duguet and Mairesse. The paper also analyzes thoroughly the decision of these firms to engage in R&D activities by using a novel categorical dependent variable, which takes three values: non-performance R&D activities, occasional performance or continuous performance over the period. Furthermore, the study investigates whether these manufacturing firms innovate persistently or discontinuously over the period. The results suggest a positive link between the intensity of R&D activities and the generation of product and process innovations. They also indicate that innovation probability is temporally persistent at the firm-level only for product innovations. Finally, the empirical findings reveal that these technological innovations have a positive effect on firm’s productivity.

Suggested Citation

  • Leonel Muinelo-Gallo & Macarena Suanes Martínez, 2018. "Persistence and economic effects of technological innovations: a dynamic and sequential analysis of Uruguayan manufacturing firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 27(8), pages 671-694, November.
    • Handle: RePEc:taf:ecinnt:v:27:y:2018:i:8:p:671-694
    DOI: 10.1080/10438599.2017.1389119
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    Cited by:

    1. Juan Jesus Arenas & Juan Erasmo Gómez & Efraín Ortiz & Freddy Paz & Carlos Parra, 2020. "Elements of the Persistence in Innovation: Systematic Literature Review," Administrative Sciences, MDPI, vol. 10(4), pages 1-14, October.
    2. Marco Túlio Dinali Viglioni & Mozar José Brito & Cristina Lelis Leal Calegario, 2020. "Innovation and R&D in Latin America and the Caribbean countries: a systematic literature review," Scientometrics, Springer;Akadémiai Kiadó, vol. 125(3), pages 2131-2167, December.
    3. Maximiliano Machado, 2021. "Heterogeneous Innovation Persistence: Evidence From Uruguayan Firms," Documentos de Trabajo (working papers) 21-04, Instituto de Economía - IECON.

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