Human Capital, Innovation and Productivity in Colombian Enterprises: A Structural Approach using Instrumental Variables

S Ramirez (), Juan Gallego () and Mery Tamayo Plata ()

No 18869, Documentos de trabajo - Alianza EFI from Alianza EFI

Abstract: In this paper we explore the R&D-innovation-productivity linkage for the Colombian manufacturing industry, paying special attention to the role of human capital. Using data from two firm-level surveys such as the Survey of Development and Technological Innovation (EDIT) and the Annual Manufacturing Survey, we extended the model of Crepon, Duget and Mairesse (hereafter CDM) due to Crepon et al. [1998] by including human capital at the investment decision stage. We implement an instrumental variable methodology to correct the potential endogeneity that may arise when including human capital into the model. Our results suggest that human capital has a causal efect on the research and development (R&D) investment decisions and the innovation behavior of the firm and, finally increasing the labor productivity of the firm. The conclusions of our work highlight the relevance of human capital in the CDM-type of literature and contrast with the relative little importance that this variable has received in this kind of models.

Keywords: Innovation; Productivity; Human Capital (search for similar items in EconPapers)
JEL-codes: J24 O30 (search for similar items in EconPapers)
Pages: 27
Date: 2019-01-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Human capital, innovation and productivity in Colombian enterprises: a structural approach using instrumental variables (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000561:018869

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