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Innovation, R&D and Productivity in the Costa Rican ICT Sector: A Case Study

Author

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  • Ricardo Monges-Gonzalez
  • John Hewitt

Abstract

This paper addresses the relationships between innovation, research and development (R&D) and productivity in domestic ICT firms in Costa Rica. Factors considered were the types of innovation outputs produced by domestic ICT firms, the relative importance of innovation inputs, the impacts of innovation on firm productivity, the protection of innovations, and impediments to innovation. While most firms engaged in all types of output and input innovations, they appear to be driven by retaining or increasing market share rather than increasing productivity. Half of firms do not formally protect the intellectual property created by their innovations, are not familiar with methods for protecting innovation or the availability of government grants for such purposes, and face barriers associated with the Costa Rican Patent Office. Other impediments include lack of knowledge about financial resources available and scarcity of human resources. There is also evidence of knowledge spillovers through worker mobility from multinationals operating in Costa Rica to domestic ICT firms.

Suggested Citation

  • Ricardo Monges-Gonzalez & John Hewitt, 2010. "Innovation, R&D and Productivity in the Costa Rican ICT Sector: A Case Study," Research Department Publications 4670, Inter-American Development Bank, Research Department.
  • Handle: RePEc:idb:wpaper:4670
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    File URL: http://www.iadb.org/research/pub_hits.cfm?pub_id=IDB-WP-189&pub_file_name=pubIDB-WP-189.pdf
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    References listed on IDEAS

    as
    1. Evenson, Robert E. & Westphal, Larry E., 1995. "Technological change and technology strategy," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 37, pages 2209-2299 Elsevier.
    2. Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, , vol. 14(1), pages 15-34, February.
    3. Ricardo Monge-Gonzalez & Luis Rivera & Julio Rosales-Tijerino, 2010. "Productive Development Policies in Costa Rica: Market Failures, Government Failures, and Policy Outcomes," Research Department Publications 4657, Inter-American Development Bank, Research Department.
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    More about this item

    Keywords

    Research and development; Information communications technology; Innovation; Costa Rica;

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • 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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