2007-11-132007-03-222007-11-132004http://hdl.handle.net/10625/26594This paper analyses the determinants of innovative inputs and outputs and their impacts on manufacturing firms’ productivity in developing countries. The econometric results of the study in Argentina show that in house research and development (R&D) and technology acquisition expenditures have positive payoffs in terms of enhanced probability of introducing new products and/or processes to the market. In turn, innovators attain higher productivity levels than non-innovators. The results also show that large firms have a higher probability of engaging in innovation activities and of becoming innovators.1 digital fileenRESEARCH AND DEVELOPMENTRESEARCH CENTRESINNOVATIONNEW TECHNOLOGYPRODUCTIVITYDEVELOPING COUNTRIESARGENTINAFINANCIAL RESOURCESECONOMIC ASPECTSSOUTH AMERICAECONOMETRICSWorking Paper