Firms' Innovation, Public Financial Support, and Total Factor Productivity: The Case of Manufactures in <scp>P</scp>eru

Tello, Mario D.

doi:10.1111/rode.12147

Cited by 21 publications

(30 citation statements)

References 33 publications

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“…Further, unlike our work, Goedhuys et al. () assume that the productivity term in the production function specification is just an idiosyncratic shock, while Tello () and Arbeláez and Torrado () assume that an exogenous Markov process governs this term. Hence, we are not conscious of any study for Latin American countries using TFP with an endogenous Markov process.…”

Section: Introduction and Literature Reviewmentioning

confidence: 79%

“…Some exceptions (from Table ) that account for some dynamics in the relationship between innovation and productivity are Arza and López () and Chudnovsky, López, and Pupato (), for Argentina, and Cassoni and Ramada (), for Uruguay, who exploit the panel dimension of their data. Also, Alvarez, Bravo‐Ortega, and Navarro () and Benavente and Bravo (), for Chile, Arbeláez and Torrado (), for Colombia, and Tello (), for Peru, who consider possible delayed effects of innovation outputs on productivity. However, to the best of our knowledge, we are only aware of three studies that use TFP measures to analyze the relationship between innovation outputs and productivity in Latin America.…”

Section: Introduction and Literature Reviewmentioning

confidence: 99%

“…However, to the best of our knowledge, we are only aware of three studies that use TFP measures to analyze the relationship between innovation outputs and productivity in Latin America. Within the CDM framework, Tello () fails to find any relationship between technological and nontechnological innovations and TFP (estimated using the Olley and Pakes procedure) for Peru. However, Arbeláez and Torrado () find evidence of a higher productivity for Colombian innovative firms (where innovation is defined as adaptation, process, product, marketing, or organizational).…”

Section: Introduction and Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Product and process innovation and total factor productivity: Evidence for manufacturing in four Latin American countries

Demmel

Máñez

Barrachina

et al. 2017

Review Development Economics

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The literature on firm productivity recognizes the important role played by firm innovation activities on firm productivity in developed countries. However, the literature for developing and emerging economies is scarce and far from conclusive. The aim of this paper is to study the innovationproductivity link (distinguishing between process and product innovations) for manufacturing at the firm level for four Latin American countries (two classified as upper-middle income countries by the World Bank-Argentina and Mexico-and two as lower-middle income-Colombia and Peru). We aim testing whether the level of development is a mediating factor in the innovation-productivity link. The data used have been drawn from the World Bank panel enterprise surveys, for 2006 and 2010. First, we estimate total factor productivity (TFP) and, second, we use the estimated TFP as a regressor or as dependent variable, in two models for testing self-selection of the most productive firms into innovation or the existence of returns to innovation in terms of productivity. Our results confirm the mediating role of the level of development in the innovation-productivity link: both the self-selection and the returns-to-innovation hypotheses work only for the upper-middle income countries.

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Section: Introduction and Literature Reviewmentioning

confidence: 79%

Section: Introduction and Literature Reviewmentioning

confidence: 99%

Section: Introduction and Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Product and process innovation and total factor productivity: Evidence for manufacturing in four Latin American countries

Demmel

Máñez

Barrachina

et al. 2017

Review Development Economics

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“…In the same path, Wanzenböck, Scherngell, and Fischer (2013) show that once companies receive subsidies to innovation, the likelihood of abandoning their innovation projects decreases, the cooperative behavior increases, and the knowledge transfer flows become more visible. At the same time, Tello (2015), Busom and Vélez-Ospina (2017), and Jiang et al (2018) show that companies receiving subsidies tend to increase their propensity to innovate. However, the literature on the effects of subsidies on behavioral additionality is not widely disseminated, and generally, literature about innovation subsidy focuses on the input additionalities of innovation (Dimos & Pugh, 2016).…”

Section: Literature Reviewmentioning

confidence: 97%

Input, Output, and Behavioral Additionality of Innovation Subsidies

Méndez-Morales

Muñoz

2019

Journal of Technology Management & Innovation

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Using a Conditional Difference in Difference procedure and data for Colombia, we determine if firms that receive subsidies to innovation in the period 2010-2016 present additionality on input, output, and behavioral innovation variables. We found that there are differences among the additionalities of small and medium firms (SMEs) and big firms, and the existence of a crowding-out effect for internal R&D expenditures in SMEs. At the same time, we found additionality on R&D employment for all types of firms and the presence of experience effects introduced by subsidies, especially for SMEs. These effects are related to positive additionalities. At the same time, we cannot find additionality effects on patents and trademarks. However, we found negative additionality on sales of big companies that we relate with the way we measure this variable.

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“…Heckman (1979) proposes a two-step method (also called the Heckman correction, Heckman's lambda or the Heckit method) to solve this problem and it has been widely used. Many scholars (Berthélemy, 2006;Tebaldi & Kim, 2010;Lianos & Pseiridis, 2011;Tello, 2015;Qian, Wang, & Zheng, 2016) adopt this method or its extension in migration studies. The Heckit method first builds a probit model to estimate the binary decision (stay or migrate) and derive a correction parameter called the inverse Mills ratio (IMR or lambda).…”

mentioning

confidence: 99%

Like father like son? Revisiting the role of parental education in estimating returns to education in China

Gong

2018

Review Development Economics

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Parental education has been used as an instrument in the earnings equation to deal with the endogeneity problem of education. Recently, however, many have found that parental education can be a proxy for unobservable networking, which directly affects wages. This article revisits the role of parental education in estimating returns to education by introducing the “geographical isolation” theory. For migrant workers who receive an education and move around to work, parental education affects their education but otherwise is unrelated to their wages, which makes parental education a good instrument in the instrumental variable approach. For local residents who stay in the same place during childhood and adulthood, parental education can directly affect their wages, and is better introduced as a proxy variable using the control variable method. This article identifies the heterogeneous effect of parental education on wages for different Chinese cohorts and contributes to the debate between the control variable and instrumental variable methods in returns to education studies. Moreover, the idea of geographic isolation can help in the search for good instrumental variables for migrant workers, which is valuable when studying the large migrant population in developing countries such as Mexico, China, India, Vietnam, and many African countries.

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Firms' Innovation, Public Financial Support, and Total Factor Productivity: The Case of Manufactures in Peru

Cited by 21 publications

References 33 publications

Product and process innovation and total factor productivity: Evidence for manufacturing in four Latin American countries

Product and process innovation and total factor productivity: Evidence for manufacturing in four Latin American countries

Input, Output, and Behavioral Additionality of Innovation Subsidies

Like father like son? Revisiting the role of parental education in estimating returns to education in China

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