Global Innovation Policy Index

Ranks fifty-five nations' strategies to boost innovation capacity: policies on trade, scientific research, information and communications technologies, tax, intellectual property, domestic competition, government procurement, and high-skill immigration

Financial Development and Technology

Research in development economics reveals that the bulk of cross-country differences in economic growth is attributable to differences in productivity. By some accounts, productivity contributes to more than 60 percent of countries’ growth in per capita GDP. I examine a particular channel through which financial development could explain cross-country and crossindustry differences in realized productivity. I argue that financial development induces technological innovations ñ a major stimulus of productivity - through facilitating capital mobilization and risk sharing. In a panel of industries across thirty eight countries, I find that financial development explains the cross-country differences in industry rates of technological progress, rates of real cost reduction and rates of productivity growth. I find that the effect of financial development on productivity and technological progress is heterogeneous across industrial sectors that differ in their needs for financing innovation. In particular, industries whose younger firms depend more on external finance realize faster rate of technological change in countries with more developed banking sector.http://deepblue.lib.umich.edu/bitstream/2027.42/57259/1/wp879 .pd

Financial Development and Technology

Research in development economics reveals that the bulk of cross-country differences in economic growth is attributable to differences in productivity. By some accounts, productivity contributes to more than 60 percent of countries’ growth in per capita GDP. I examine a particular channel through which financial development could explain cross-country and crossindustry differences in realized productivity. I argue that financial development induces technological innovations – a major stimulus of productivity - through facilitating capital mobilization and risk sharing. In a panel of industries across thirty eight countries, I find that financial development explains the cross-country differences in industry rates of technological progress, rates of real cost reduction and rates of productivity growth. I find that the effect of financial development on productivity and technological progress is heterogeneous across industrial sectors that differ in their needs for financing innovation. In particular, industries whose younger firms depend more on external finance realize faster rate of technological change in countries with more developed banking sector.http://deepblue.lib.umich.edu/bitstream/2027.42/40135/3/wp749.pd

The Prevalence and Impact of Skills Gaps on Latin America and the Caribbean

In Latin America and the Caribbean anecdotal evidence from business leaders, the press, and numerous government reports suggest many firms express a serious concern that they face internal employee skills deficiencies that limit performance, a phenomenon that has been labeled as a “skills gap”. This article explores the extent of national skills gaps; the importance of skills gaps relative to other business challenges; the industries facing the most severe skills gaps; and the prevalence of skills gaps by firm size. Based on international example, the article also discusses the ramifications of skills gaps on firms and regional competitiveness. (Las evidencias anecdóticas de líderes empresariales, de la prensa y de numerosos informes gubernamentales sobre América Latina y el Caribe sugieren que son muchas las empresas que muestran una seria preocupación respecto a las deficiencias en las habilidades de competencia y conocimiento de sus empleados internos y cómo estas deficiencias merman su rendimiento. El fenómeno se ha bautizado como “brecha de habilidades” y en este artículo analizamos su alcance en cada país, así como la importancia de la brecha de habilidades comparada con otros retos empresariales, los sectores industriales que se enfrentan a brechas de habilidades más graves y la prevalencia de la brecha de habilidades según el tamaño de la empresa. A partir de ejemplos internacionales, el artículo también analiza el modo en que la brecha de habilidades se extiende por la empresa y afecta a su competitividad regional.) (As provas especulativas retiradas dos relatórios de líderes empresariais, da Imprensa e de vários organismos públicos da América Latina e das Caraíbas sugerem que muitas empresas revelam uma séria preocupação, porquanto enfrentam deficiências ao nível das competências dos colaboradores internos que limitam o seu desempenho, um fenómeno que foi denominado “lacunas nas competências” (skills gap). Este artigo aborda a dimensão das lacunas nas competências a nível nacional, a importância das lacunas nas competências relativamente a outros desafios empresariais, os sectores que enfrentam as maiores lacunas nas competências e a prevalência das lacunas nas competências por dimensão das empresas. Com base em exemplos internacionais, o presente artigo também abrange as ramificações das lacunas nas competências no que diz respeito à competitividade das empresas e das regiões.)Competitiveness; skills gaps; human capital development; knowledge-based economy; economic development; competitividad; competitividade; brecha de habilidades; lacunas nas competências; desarrollo de capital humano; desenvolvimento do capital humano; economía basada en el conocimiento

Innovation and Performance in Peruvian Manufacturing Firms: Does R&D Play a Role?

Purpose: The paper aims to study whether Peruvian manufacturing firms that implement innovation have positive performance and whether R&D activities moderate these relationships. Design/Methodology/Approach: Using a dataset of Peruvian manufacturing firms from the 2018 National Survey of Innovation, a LOGIT model analysis was applied to 774 companies. Additionally, we fitted different models into subsamples to explore the moderating effects of R&D on manufacturing firms. Finally, the regression models were computed using R software. Findings: The results indicate that product, service, and marketing innovation are associated positively with an increase in market share, while process and organizational innovations are associated positively with productivity. Moreover, companies with R&D are more productivity-oriented than companies without R&D.   Research Implications: This study contributes to the literature on innovation management by supporting the assumption that innovation results in increased productivity and expands market demand. In addition, findings highlight that R&D is essential for boosting firms' productivity. Practical Implications: Managers should consider an appropriate combination of the innovation portfolio and R&D investments in order to make progress and increase performance in the company. In addition, policy makers should consider that investments to promote the development of R&D activities in manufacturing companies will likely lead to medium or long-term returns. Originality/Value: These results provide a deeper understanding of how the effects of innovations implemented by manufacturing firms - especially service and process innovation - improve their performance

Innovation and performance in Peruvian manufacturing firms: does R&D play a role?

Support from the Program for High Performance in Research of the Pontifical Catholic University of Peru.Purpose - This paper aims to study whether Peruvian manufacturing firms that implement innovation have positive performance and whether R&D activities moderate these relationships.Design/methodology/approach - Using a data set of Peruvian manufacturing firms from the 2018 National Survey of Innovation, a LOGIT model analysis was applied to 774 companies. In addition, the authors fitted different models into subsamples to explore the moderating effects of R&D on manufacturing firms. Finally, the regression models were computed using R software.Findings - The results indicate that product, service and marketing innovation are associated positively with an increase in market share, while process and organizational innovations are associated positively with productivity. Moreover, companies with R&D are more productivity-oriented than companies without R&D.Research limitations/implications - This study contributes to the literature on innovation management by supporting the assumption that innovation results in increased productivity and expands market demand. In addition, findings highlight that R&D is essential for boosting firms' productivity.Practical implications - Managers should consider an appropriate combination of the innovation portfolio and R&D investments to make progress and increase performance in the company. In addition, policymakers should consider that investments to promote the development of R&D activities in manufacturing companies will likely lead to me?dium-or long-term returns.Social implications - The correct use of indicators to measure these relationships could help the policymaker to design and measure policy instruments more efficiently. Originality/value - These results provide a deeper understanding of how the effects of innovations implemented by manufacturing firms, especially service and process innovation, improve their performance.Pontifical Catholic University of Per

Innovation and Growth in Resource Rich Countries

Numerous resource rich economies have been far more dynamic than those in Latin America and there is little long term evidence that natural resource abundant countries generally under perform. But two factors historically distinguish Latin America from the more successful experiences of Scandinavia or Australia. First, deficient national "learning" or "innovative" capacity arising from low investment in human capital and scientific infrastructure led to weak ability to innovate or even take advantage of technological advances abroad. Second, the period of inward looking industrialization created a sector whose growth depended on artificial monopoly rents rather than the quasi-rents arising from technological adoption, and at the same time undermined resource intensive sectors that had the potential for dynamic growth.

Productive Development Policies and Supporting Institutions in Latin America and The Caribbean

This paper examines the evolution of productive development policies in Latin America in the last half century, with an emphasis on the post-reform period. The paper begins with a review of the import-substitution era and goes on to describe and make a preliminary assessment of the meaning and implications of productive development policies in the liberalization period.

ICT in Latin America: A Microdata Analysis

This book is the final report of the ECLAC-IDRC project Observatory for the Information Society in Latin American and the Caribbean (OSILAC), Third Phase”. OSILAC III is a cooperating project between the International Development Research Centre (IDRC) and the Division of Production, Productivity and Management, ECLAC-UN, which aims at understanding the dynamics of the ICT evolution and revolution and producing evidence on its potential to support socio-economic development, particularly in developing countries. As such, microdata analysis drawn from National Household Surveys and National Innovation Surveys in Latin America were used in the framework of the project in the attempt to reach those objectives Both statistical information sources provide attractive potentialities in order to investigate not only determinants of innovation activities and technology diffusion, but also its economic impacts.ICT, Innovation, Productivity