Modelling and Measuring Scientific Production: Results for a Panel of OECD Countries

This paper presents results from employing an econometric approach to examine the determinants of scientific production at cross-country level. The aim of this paper is not to provide accurate and robust estimates of investment elasticities (a doubtful task given the poor quality of the data sources and the modelling problems), but to develop and critically assess the validity of an empirical approach for characterising the production of science and its impact from a comparative perspective. We employ and discuss the limitations of a production function approach to relate investment inputs to scientific outputs using a sample of 14 countries for which we have information about Higher Education Research and Development (HERD). The outputs are taken from the Thomson ISI® National Science Indicators (2002) database on published papers and citations. The inputs and outputs for this sample of countries have been recorded for a period of 21 years (1981-2002). A thorough discussion of data shortcomings is presented in this paper. On the basis of this panel dataset we investigate the profile of the time lag between the investment in HERD and the research output and the returns to national investment in science. We devote particular attention to analysis of the presence of cross-country spillovers. We show their relevance and underline the international effect of the US system.productivity of science, lag structure, returns to HERD investment, international spillovers

Multinational Firms and Productivity Catching-Up: The Case Of Chilean Manufacturing

In this paper we study total factor productivity (TFP) catching-up using 20 years of plant-level data for Chilean manufacturing. The paper addresses two key issues: First, we analyze whether there is evidence that low productivity plants experience larger TFP growth than those closer to the technology frontier. Second, we investigate the role of multinational plants in accelerating the catching-up process by non-frontier domestic plants. Our results show evidence of productivity catching-up, and that a higher presence of multinationals positively contributes to this phenomenon. There findings are consistent with the idea of technology spillovers from high to low productivity plants or that a higher presence of multinationals increase competitiveness and productivity in domestic markets.

Effects of innovation on employment in Latin America

This study examines the impact of process and product innovation on employment growth across four Latin American countries (Argentina, Chile, Costa Rica, and Uruguay) using micro data from innovation surveys. Specifically, we relate employment growth to process innovations and to the growth of sales separately due to innovative and unchanged products. Results show that that compensation effects are prevalent, and the introduction of new products is associated with employment growth at the firm level. Specifically, we find that for the manufacturing firms as a whole, the introduction of process innovations only affects the employment growth in the countries case of Chile. At the same time, we observe no evidence of displacement effects due to the introduction of product innovations. In fact, the observed compensation effects resulting from the introduction of new products imply, in turn, employment growth even when the replacement of old products is taken into account.Innovation, Employment; Developing countries; Latin America; Innovation surveys

Innovation and Productivity - Evidence from Six Latin American Countries

This study examines the determinants of technological innovation and its impact on firm labor productivity across six Latin American countries (Argentina, Chile, Colombia, Costa Rica, Panama, and Uruguay) using micro data from innovation surveys. In line with the literature, in all countries firms that invest in knowledge are more able to introduce new technological advances, and those that innovate have greater labor productivity than those that do not. Yet firm-level determinants of innovation investment are much more heterogeneous than in OECD countries. Cooperation, foreign ownership, and exporting increase the propensity to invest in innovation activities and encourage innovation investment in only half of the countries studied. Scientific and market sources of information have little or no impact on firm innovation efforts, which illustrates the weak linkages that characterize national innovation systems in those countries. The results in terms of productivity, however, highlight the importance of innovation in enabling firms to improve economic performance and catch up.Innovation, Productivity, Developing countries, Latin America, Innovation surveys

The Impact of an Associative Strategy (the PROFO Program) on Small and Medium Enterprises in Chile

The main objective of this article is to determine if associative strategies followed in Chile have had any impact on the enhancement of productive performance of Chilean SMEs firms. In order to do that, the estimate of the impact is approached using the benchmark given by Social Experiment but within the context of a `non-experimental' evaluation design. We conclude that these kinds of policies have been effective in increasing the productivity of the participating firms, and have also been efficient since they have achieved high social profits.program evaluation, associative strategies, SMEs, innovation, nonexperimental design

Productivity, Exporting and the Learning-by-Exporting Hypothesis: Direct Evidence from UK Firms

Case study evidence suggests that exporting firms learn from their clients. But econometric evidence, mostly using exporting and TFP growth, is mixed. We use a UK panel data set with firm-level information on exporting and productivity. Our innovation is that we also have direct data on the sources of learning (in this case about new technologies). Controlling for fixed effects we have two main findings. First, we find firms who exported in the past are more likely to then report that they learnt from buyers (relative to learning from other sources). Second, firms who had learned from buyers (more than they learnt from other sources) in the past are more likely to then have productivity growth. This suggests some support for the learning-by-exporting hypothesis, though is not clear whether firms deserve an exporting subsidy.Productivity, Exporting, Learning

Productivity, Exporting and the Learning-by-Exporting Hypothesis: Direct Evidence from UK Firms

Case study evidence suggests that exporting firms learn from their clients. But econometric evidence, mostly using exporting and TFP growth, is mixed. We use a UK panel data set with firm-level information on exporting and productivity. Our innovation is that we also have direct data on the sources of learning (in this case about new technologies). Controlling for fixed effects we have two main findings. First, we find firms who exported in the past are more likely to then report that they learnt from buyers (relative to learning from other sources). Second, firms who had learned from buyers (more than they learnt from other sources) in the past are more likely to then have productivity growth. This suggests some support for the learning-by-exporting hypothesis.Productivity, Exporting, Learning

Information Technology, Organisational Change and Productivity Growth: Evidence from UK Firms

We examine the relationships between productivity growth, IT investment and organisational change (Δ O) using UK firm panel data. Consistent with the small number of other micro studies we find (a) IT appears to have high returns in a growth accounting sense when Δ O is omitted; when Δ O is included the IT returns are greatly reduced, (b) IT and Δ O interact in their effect on productivity growth, (c) non-IT investment and Δ O do not interact in their effect on productivity growth. Some new findings are (a) Δ O is affected by competition and (b) we also find strong effects on the probability of introducing Δ O from ownership. US-owned firms are much more likely to introduce Δ O relative to foreign owned firms who are more likely still relative to UK firms.Information technology, Productivity growth, Organisational change

Productivity Growth, Knowledge Flows and Spillovers

This paper explores the role of knowledge flows and TFP growth by using direct survey data on knowledge flows linked to firm-level TFP growth data. Our knowledge flow data correspond to the kind of information flows often argued, especially by policy-makers, as important, such as within the firm, or from suppliers, purchasers, universities and competitors. We examine three questions (a) What is the source of knowledge flows? (b) To what extent do such flows contribute to productivity growth? (c) Do such flows constitute a spillover flow of free knowledge? Our evidence show that the main sources of knowledge are competitors; suppliers; plants that belong to the same group and universities. We conclude that the main "free" information flow spillover is from competitors and that multi-national presence may be a proximate source of this spillover.business services, structural change, economic growth, productivity

Innovation and Productivity - Evidence from Six Latin American Countries

This study examines the determinants of technological innovation and its impact on firm labor productivity across six Latin American countries (Argentina, Chile, Colombia, Costa Rica, Panama, and Uruguay) using micro data from innovation surveys. In line with the literature, in all countries firms that invest in knowledge are more able to introduce new technological advances, and those that innovate have greater labor productivity than those that do not. Yet firm-level determinants of innovation investment are much more heterogeneous than in OECD countries. Cooperation, foreign ownership, and exporting increase the propensity to invest in innovation activities and encourage innovation investment in only half of the countries studied. Scientific and market sources of information have little or no impact on firm innovation efforts, which illustrates the weak linkages that characterize national innovation systems in those countries. The results in terms of productivity, however, highlight the importance of innovation in enabling firms to improve economic performance and catch up