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Innovation, R&D and Productivity: Evidence from Thai Manufacturing

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  • Thanapol Srithanpong

    () (Graduate School of Business and Commerce, Keio University, 2-15-45, Mita, Minato-ku, Tokyo, 108-8345, Japan)

Abstract

This paper empirically examines the relationship between innovation, R&D (Research and Development), and productivity in Thai manufacturing using cross-sectional data from the 2007 Industrial Census of Thailand. We utilize a simplified structural model (CDM model) that describes the link between innovation output, R&D and productivity for the Thai case. Various estimation techniques are used to compare and provide evidence for empirical results. Our findings generally suggest that government aid and plant characteristics play an important role for a plant to engage in R&D and to be innovative, both in terms of process innovation and product innovation. Exporting plants, plants in the central region, and plants that are categorized as Head Branch type are more likely to engage in R&D and be innovative. The type of industry and specific technological characteristics of plants are shown to influence innovation effort and decisions to undertake R&D. On average, plant size, foreign ownership, exporting and product innovation are important drivers of productivity enhancement in Thai manufacturing.

Suggested Citation

  • Thanapol Srithanpong, 2014. "Innovation, R&D and Productivity: Evidence from Thai Manufacturing," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 7(3), pages 103-132, December.
  • Handle: RePEc:tei:journl:v:7:y:2014:i:3:p:103-132
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    References listed on IDEAS

    as
    1. Crespi, Gustavo & Zuniga, Pluvia, 2012. "Innovation and Productivity: Evidence from Six Latin American Countries," World Development, Elsevier, vol. 40(2), pages 273-290.
    2. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    3. Mogens Dilling-Hansen & Susanne Jensen, 2011. "Lifestyle production: Transformation from manufacturing to knowledge based production using innovation," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 4(1), pages 35-54, March.
    4. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity Across Four European Countries," Oxford Review of Economic Policy, Oxford University Press, vol. 22(4), pages 483-498, Winter.
    5. Jaan Masso & Priit Vahter, 2008. "Technological innovation and productivity in late-transition Estonia: econometric evidence from innovation surveys," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 240-261.
    6. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
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    8. Ramstetter, Eric D., 2004. "Labor productivity, wages, nationality, and foreign ownership shares in Thai manufacturing, 1996-2000," Journal of Asian Economics, Elsevier, vol. 14(6), pages 861-884, January.
    9. Verardi, Vincenzo & Croux, Christophe, 2009. "Robust regression in Stata," Stata Journal, StataCorp LP, vol. 9(3), pages 1-15.
    10. Intarakumnerd, Patarapong & Chairatana, Pun-arj & Tangchitpiboon, Tipawan, 2002. "National innovation system in less successful developing countries: the case of Thailand," Research Policy, Elsevier, vol. 31(8-9), pages 1445-1457, December.
    11. Patarapong Intarakumnerd, 2006. "Thailand’s National Innovation System in Transition," Chapters,in: Asia’s Innovation Systems in Transition, chapter 5 Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Productivity; Innovation; R&D; CDM model; Thailand;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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