Innovation, R&D Investment and Productivity in Colombian Firms

Maria Arbelaez (marbelaez@fedesarrollo.org.co) and Mónica Parra Torrado

No 3074, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: 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.

Keywords: IDB-WP-251; Innovation; Productivity; Economic performance; Total factor productivity; Generalized Tobit model; Firm-level data; Colombia (search for similar items in EconPapers)
JEL-codes: C21 C31 C34 C35 L60 O14 O31 O32 O47 (search for similar items in EconPapers)
Date: 2011-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:3074

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