Innovation, R&D Investment and Productivity in Colombian Firms

This paper attempts to establish a formal relationship between innovation and productivity using Colombian firm-level data. It is found that the production of goods and services new to the firm and to the domestic market enhances firms' sales per worker, and innovation that results in introducing new goods and services to the international market boosts both sales and Total Factor Productivity (TFP). Innovation in processes likewise improves firms' productivity and sales. Finally, innovation in marketing and management increases sales per worker and enhances TFP when investment is made in Research and Development. The paper also studies the factors behind firms' decision to invest in innovation, the intensity of such investment and the returns to investment in innovation.

Bibliographic Details

Main Author:	Inter-American Development Bank
Other Authors:	María Angélica Arbeláez
Format:	Working Papers biblioteca
Language:	English
Published:	Inter-American Development Bank
Subjects:	Business Development, Productivity, Research and Development, C21 - Cross-Sectional Models • Spatial Models • Treatment Effect Models • Quantile Regressions, C31 - Cross-Sectional Models • Spatial Models • Treatment Effect Models • Quantile Regressions • Social Interaction Models, C34 - Truncated and Censored Models • Switching Regression Models, C35 - Discrete Regression and Qualitative Choice Models • Discrete Regressors • Proportions, L60 - Industry Studies: Manufacturing: General, O14 - Industrialization • Manufacturing and Service Industries • Choice of Technology, O31 - Innovation and Invention: Processes and Incentives, O32 - Management of Technological Innovation and R&D, O47 - Empirical Studies of Economic Growth • Aggregate Productivity • Cross-Country Output Convergence, IDB-WP-251, Innovation, Productivity, Economic performance, Total factor productivity, Generalized Tobit model, Firm-level data, Colombia,
Online Access:	http://dx.doi.org/10.18235/0011194 https://publications.iadb.org/en/innovation-rd-investment-and-productivity-colombian-firms
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