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The Role of Technology Extension and Transfer in Firms’ Innovation and Productivity in Peru

Author

Listed:
  • Miguel Ortiz

    (Departamento de Economía de la Pontificia Universidad Católica del Perú)

  • Juan Palomino

    (Departamento de Economía de la Pontificia Universidad Católica del Perú)

Abstract

This study examines how technologyextension and transfer services (TETS) drive firm-level innovation andproductivity. Since research and development (R&D) investments are subjectto market failure, engaging with external agents enables firms to innovate atlower risk and cost. Using data from Peru’s National Innovation Survey (ENI),we apply the Crépon, Duguet, and Mairesse (CDM) model alongside propensityscore matching (PSM) to enhance the reliability of our results. Additionally,we employ the generalized propensity score (GPS) method to analyze thesensitivity of innovation and sales outcomes to varying investment levels. Thefindings confirm that investment in training and external R&D significantlyenhances innovation, thereby boosting labor productivity. However, thisrelationship is nonlinear, suggesting the presence of investment thresholdsrequired to maximize impact. Palabras claves: Technology Transfer, Innovation,Productivity, R&D, CDM model JEL Classification-JE: L25, O32, O38

Suggested Citation

  • Miguel Ortiz & Juan Palomino, 2025. "The Role of Technology Extension and Transfer in Firms’ Innovation and Productivity in Peru," Documentos de Trabajo / Working Papers 2025-543, Departamento de Economía - Pontificia Universidad Católica del Perú.
    • Handle: RePEc:pcp:pucwps:wp00543
    DOI: 10.18800/2079-8474.0543
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    References listed on IDEAS

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    1. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    2. Carboni, Oliviero A. & Medda, Giuseppe, 2021. "External R&D and product innovation: Is over-outsourcing an issue?," Economic Modelling, Elsevier, vol. 103(C).
    3. Fedyunina, Anna & Radosevic, Slavo, 2022. "The relationship between R&D, innovation and productivity in emerging economies: CDM model and alternatives," Economic Systems, Elsevier, vol. 46(3).
    4. 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.
    5. Dai, Xiaoyong & Cheng, Liwei, 2015. "The effect of public subsidies on corporate R&D investment: An application of the generalized propensity score," Technological Forecasting and Social Change, Elsevier, vol. 90(PB), pages 410-419.
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    Keywords

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    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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