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Knowledge-based productivity in low-tech industries: evidence from firms in developing countries

Author

Listed:
  • Goedhuys, Micheline

    (UNU-MERIT and University of Antwerpen)

  • Janz, Norbert

    (UNU-MERIT and Aachen University of Applied Sciences)

  • Mohnen, Pierre

    (UNU-MERIT and University of Maastricht)

Abstract

Using firm level data from five countries - Brazil, Ecuador, South Africa, Tanzania and Bangladesh - this paper examines the knowledge-based determinants of productivity of firms active in food processing, textiles, and garments and leather products. In particular, it seeks to investigate the importance of various sources of knowledge in explaining productivity in the different industries. The knowledge sources driving productivity performance are very different across sectors. In food processing, firm productivity is most strongly affected by quality of management and foreign ownership linkages. In textiles, firms raise productivity levels by importing new machinery and through research and development. In garments and leather products, R&D and design activities, high quality management and licensing technology from foreign firms are significant productivity determinants. Firms' productivity levels are further depressed by regulatory and financial constraints.

Suggested Citation

  • Goedhuys, Micheline & Janz, Norbert & Mohnen, Pierre, 2008. "Knowledge-based productivity in low-tech industries: evidence from firms in developing countries," MERIT Working Papers 2008-007, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2008007
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    Cited by:

    1. Martin Srholec, 2011. "A multilevel analysis of innovation in developing countries ," Industrial and Corporate Change, Oxford University Press, vol. 20(6), pages 1539-1569, December.
    2. Fatma Nur Karaman Kabadurmus, 2021. "Innovation Challenges in South Asia: Evidence from Bangladesh, Pakistan and India," Journal of South Asian Development, , vol. 16(1), pages 100-129, April.
    3. Kawaljeet Kaur & Swati Mehta, 2023. "Modes of Technology Accumulation, Total Factor Productivity and Indian Manufacturing Sector: Firm-Level Analysis," Journal of South Asian Development, , vol. 18(1), pages 7-43, April.
    4. Calza, Elisa & Goedhuys, Micheline, 2016. "Entrepreneurial heterogeneity and the design of entrepreneurship policies for economic growth and inclusive development," MERIT Working Papers 2016-043, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Crespi, Gustavo & Zuniga, Pluvia, 2012. "Innovation and Productivity: Evidence from Six Latin American Countries," World Development, Elsevier, vol. 40(2), pages 273-290.
    6. 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.
    7. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 833-872, Elsevier.
    8. Protogerou, Aimilia & Caloghirou, Yannis & Vonortas, Nicholas S., 2017. "Determinants of young firms’ innovative performance: Empirical evidence from Europe," Research Policy, Elsevier, vol. 46(7), pages 1312-1326.
    9. Muhammad Zeeshan Younas, 2023. "Regional institutional quality and firm-level innovation: a case of selected south asian economies," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(1), pages 615-643, February.
    10. Crespi G.A. & Tacsir E. & Vargas F., 2014. "Innovation dynamics and productivity : evidence for Latin America," MERIT Working Papers 2014-092, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    11. Wadho, Waqar & Goedhuys, Micheline & Chaudhry, Azam, 2019. "Young innovative companies and employment creation, evidence from the Pakistani textiles sector," World Development, Elsevier, vol. 117(C), pages 139-152.
    12. Phung, Thuy M.T. & Vermeulen, P.A.M. & Knoben, Joris & Thọ Đạt, Trần, 2018. "Made in Vietnam : The Effects of Internal, Collaborative, and Regional Knowledge Sources of Product Innovation in Vietnamese Firms," Other publications TiSEM b9296264-405c-4575-8893-b, Tilburg University, School of Economics and Management.
    13. M. Constanza Demmel & Juan A. Máñez & María E. Rochina-Barrachina & Juan A. Sanchis-Llopis, 2017. "Product and process innovation and total factor productivity: Evidence for manufacturing in four Latin American countries," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1341-1363, November.
    14. Barasa, L. & Kimuyu, P. & Vermeulen, P.A.M. & Knoben, J. & Kinyanjui, B., 2014. "Institutions, Resources and Innovation in Developng Countries : A Firm Level Approach," Other publications TiSEM 4150bffe-8365-4b51-a7e9-d, Tilburg University, School of Economics and Management.
    15. Fu, Xiaolan & Mohnen, Pierre & Zanello, Giacomo, 2018. "Innovation and productivity in formal and informal firms in Ghana," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 315-325.
    16. Megersa Debela Daksa & Molla Alemayehu Yismaw & Sisay Diriba Lemessa & Shemelis Kebede Hundie, 2018. "Enterprise innovation in developing countries: an evidence from Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-19, December.
    17. Daniela Ritter-Hayashi & Patrick Vermeulen & Joris Knoben, 2019. "Is this a man’s world? The effect of gender diversity and gender equality on firm innovativeness," PLOS ONE, Public Library of Science, vol. 14(9), pages 1-19, September.
    18. Barasa, Laura & Knoben, Joris & Vermeulen, Patrick & Kimuyu, Peter & Kinyanjui, Bethuel, 2017. "Institutions, resources and innovation in East Africa: A firm level approach," Research Policy, Elsevier, vol. 46(1), pages 280-291.
    19. Edeh, Jude N. & Acedo, Francisco J., 2021. "External supports, innovation efforts and productivity: Estimation of a CDM model for small firms in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    20. Arega Shumetie & Mulugeta Damie Watabaji, 2019. "Effect of corruption and political instability on enterprises’ innovativeness in Ethiopia: pooled data based," Journal of Innovation and Entrepreneurship, Springer, vol. 8(1), pages 1-19, December.

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    More about this item

    Keywords

    Productivity; Knowledge; R&D; Developing Countries; Food Processing; Textiles; Garments; Leather;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • 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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