2017
DOI: 10.1111/rode.12323
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Product and process innovation and total factor productivity: Evidence for manufacturing in four Latin American countries

Abstract: 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 … Show more

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Cited by 24 publications
(11 citation statements)
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“…As we indicated in our Data section above, there are only 472 firms present in the two survey waves. Even with this data limitation, however, we obtain from estimation in Table III that there is time persistence in all innovation outcomes, with the exception of process innovation, and that the highest persistence is obtained for product and marketing innovations (for other empirical studies about persistence in innovation output see Máñez et al , 2009; Raymond et al , 2010; Demmel et al , 2017).…”
Section: Resultsmentioning
confidence: 82%
“…As we indicated in our Data section above, there are only 472 firms present in the two survey waves. Even with this data limitation, however, we obtain from estimation in Table III that there is time persistence in all innovation outcomes, with the exception of process innovation, and that the highest persistence is obtained for product and marketing innovations (for other empirical studies about persistence in innovation output see Máñez et al , 2009; Raymond et al , 2010; Demmel et al , 2017).…”
Section: Resultsmentioning
confidence: 82%
“…Therefore, they suggested an alternative approach (the Ackerberg–Caves–Fraser [ACF] method) that they be based on the OP and LP methods. Because the ACF method further improves the accuracy of estimating TFP, it is widely accepted by economists worldwide (Demmel, Máñez, Rochina‐Barrachina, & Sanchis‐Llopis, 2017; Luong, 2013). The ACF method is briefly introduced:…”
Section: Empirical Strategy and Definition Of Variablesmentioning
confidence: 99%
“…The TFP of enterprise level is calculated with the OP method (Olley & Pakes, 1992), in view of the endogeneity problems and the loss of valid information generated by OLS and FE method (Demmel, Máñez, Rochina-Barrachina, & Sanchis-Llopis, 2017). The industrial added value is determined by the sum of the main business income of the year and the yearly increment of the inventory value.…”
Section: Enterprise Characteristicsmentioning
confidence: 99%