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The impact of innovation activities on productivity and firm growth: evidence from Brazil

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  • Goedhuys, Micheline

    () (UNU-MERIT and University of Antwerpen)

Abstract

Using micro data from Brazilian manufacturing firms, this paper investigates the impact of a wide set of innovation activities on firms' total factor productivity (TFP) and its subsequent effect on firm growth, measured by sales. Controlling for size and age of the firms, productivity levels and productivity growth of firms over time are found to be key drivers of firm size adjustments. The activities leading to higher productivity levels are organizational change, cooperation with clients, human capital development, ICT usage, product innovation and learning by exporting, with an R&D effect only in the long run. Though the intensity with which firms engage in these innovation activities is sector dependent, innovation activities are in all sectors important for explaining sales growth differences, also in the more traditional sectors in which Brazilian firms have a competitive advantage.

Suggested Citation

  • Goedhuys, Micheline, 2007. "The impact of innovation activities on productivity and firm growth: evidence from Brazil," MERIT Working Papers 002, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2007002
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    File URL: https://www.merit.unu.edu/publications/wppdf/2007/wp2007-002.pdf
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    References listed on IDEAS

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    Cited by:

    1. A.A. Egbetokun & A.A. Adeniyi & W.O. Siyanbola, 2012. "On the capability of SMEs to innovate: the cable and wire manufacturing subsector in Nigeria," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 9(1/2), pages 64-85.
    2. Pietro Cova & Massimiliano Pisani & Alessandro Rebucci, 2010. "Macroeconomic Effects of China’s Fiscal Stimulus," Research Department Publications 4689, Inter-American Development Bank, Research Department.
    3. Hulya Ulku & Mehmet Pamukcu, 2015. "The impact of R&D and knowledge diffusion on the productivity of manufacturing firms in Turkey," Journal of Productivity Analysis, Springer, vol. 44(1), pages 79-95, August.
    4. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, Elsevier.
    5. Elena Feltrinelli & Roberto Gabriele & Sandro Trento, 2013. "Do middle managers matter?," DEM Discussion Papers 2013/11, Department of Economics and Management.
    6. Crespi, Gustavo & Zuniga, Pluvia, 2012. "Innovation and Productivity: Evidence from Six Latin American Countries," World Development, Elsevier, vol. 40(2), pages 273-290.
    7. repec:eso:journl:v:47:y:2016:i:2:p:213-245 is not listed on IDEAS
    8. M. Constanza Demmel & Juan A. Máñez & María E. Rochina-Barrachina & Juan A. Sanchis-Llopis, 2013. "Innovation and productivity: evidence for 4 Latin American countries manufacturing industry," Working Papers 1307, Department of Applied Economics II, Universidad de Valencia.
    9. Sérgio Kannebley & Júlia Sekkel & Bruno Araújo, 2010. "Economic performance of Brazilian manufacturing firms: a counterfactual analysis of innovation impacts," Small Business Economics, Springer, vol. 34(3), pages 339-353, April.
    10. Egbetokun, A & Siyanbola, W & Olamade, O & Adeniyi, A & Irefin, I, 2008. "Innovation in Nigerian SMEs: types and impact," MPRA Paper 25338, University Library of Munich, Germany, revised 2008.
    11. Adriana Cassoni & Magdalena Ramada, 2010. "Innovation, R&D Investment and Productivity: Uruguayan Manufacturing Firms," IDB Publications (Working Papers) 1973, Inter-American Development Bank.
    12. Crespi G.A. & Tacsir E. & Vargas F., 2014. "Innovation dynamics and productivity : evidence for Latin America," MERIT Working Papers 092, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    More about this item

    Keywords

    Technological Change; Research and Development; Innovation; Productivity; Manufacturing Industry; Total Factor Productivity; Brazil;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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