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Empirical analysis of innovation and productivity in services firms: The case of South Africa

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  • Atoko Kasongo
  • Moses Sithole
  • Yasser Buchana

Abstract

The purpose of this paper is to investigate the impact of innovation on productivity in the services sector firms in South Africa. Using a three-stage econometric model we find that service sector firms are innovative. We show that firm size, public financial support, patent protection and market sources of information have a positive impact on the decision to innovate. The level of investment in innovation significantly influences the success of both technological and non-technological innovations in service sector firms. The results find that both technological and non-technological innovations have a positive impact on labour productivity, with a greater impact from non-technological innovation.

Suggested Citation

  • Atoko Kasongo & Moses Sithole & Yasser Buchana, 2023. "Empirical analysis of innovation and productivity in services firms: The case of South Africa," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 15(1), pages 1-13, January.
  • Handle: RePEc:taf:rajsxx:v:15:y:2023:i:1:p:1-13
    DOI: 10.1080/20421338.2021.2001207
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