Technological and non-technological innovation and productivity in services vis a vis manufacturing in Uruguay
Date
2012-12
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Publisher
Inter-American Development Bank (IDB)
Abstract
In this paper, the links between the investment in innovation activities, innovation outputs
(technological and non-technological innovation), and productivity in services and
manufacturing are explored using innovation survey data from Uruguay. This is the first
attempt to study these links for a developing country. The size of firms, their cooperation
on R&D activities, the use of public financial support, patent protection, and the use of
market sources of information, are the variables that are more consistently associated
with the decision to invest in innovation activities across sectors. The main determinants
of technological and non-technological innovations are the level of investment in
innovation activities and the size of firms. The results indicate that both technological
(i.e., product and process) and non-technological (i.e., marketing an organizational)
innovations are positively associated to productivity gains in services, but nontechnological
innovations have a more important role. The reverse happens for
manufacturing; technological innovations are the relevant ones for productivity.
Description
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Working Paper
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Keywords
INNOVATION, PRODUCTIVITY, SERVICES, MANUFACTURING, DEVELOPING COUNTRIES, LATIN AMERICA, INNOVATION SURVEYS, TECHNOLOGICAL CHANGE, PATENTS, SMALL ENTERPRISES, SERVICE INDUSTRY, GOVERNMENT POLICY, URUGUAY