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Innovation, R&D Investment and Productivity in Chile

Author

Listed:
  • Roberto Alvarez
  • Claudio Bravo-Ortega
  • Lucas Navarro

Abstract

This paper uses two sources of information and different methodologies to analyze the causal effect of product and process innovation on productivity in the Chilean manufacturing industry during the past decade. In general, the evidence suggests there is not a contemporaneous effect of product innovation on productivity, but there is a positive effect of process innovation. This notsignificant effect of product innovation contrasts with evidence of studies for other countries. However, the results show the presence of lagged effects product innovation on productivity two years after innovation. Compared with the case of developed countries, this evidence might be consistent with a very slow process of “learning by doing” on the part of Chilean firms with regard to mastering new technologies. These slow and frequently uncertain gains in productivity could help to explain the low levels of investment in research and development (R&D) activities by Chilean firms.

Suggested Citation

  • Roberto Alvarez & Claudio Bravo-Ortega & Lucas Navarro, 2010. "Innovation, R&D Investment and Productivity in Chile," Research Department Publications 4691, Inter-American Development Bank, Research Department.
  • Handle: RePEc:idb:wpaper:4691
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    References listed on IDEAS

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    11. Moguillansky, Graciela & Salas, Juan Carlos & Cares, Gabriela, 2006. "Capacidad de innovación en industrias exportadoras de Chile: la industria del vino y la agroindustria hortofrutícola," Comercio Internacional 79, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    Citations

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    Cited by:

    1. Pietro Cova & Massimiliano Pisani & Alessandro Rebucci, 2010. "Macroeconomic Effects of China’s Fiscal Stimulus," Research Department Publications 4689, Inter-American Development Bank, Research Department.
    2. Crespi, Gustavo & Zuniga, Pluvia, 2012. "Innovation and Productivity: Evidence from Six Latin American Countries," World Development, Elsevier, vol. 40(2), pages 273-290.
    3. Caterina Santi & Pietro Santoleri, 2017. "Exploring the link between innovation and growth in Chilean firms," Small Business Economics, Springer, vol. 49(2), pages 445-467, August.

    More about this item

    Keywords

    Productivity; Innovation; Investment; Research and development; Chile;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing

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