IDEAS home Printed from https://ideas.repec.org/a/pal/eurjdr/v36y2024i2d10.1057_s41287-023-00590-0.html
   My bibliography  Save this article

The Challenge of Productivity-Based Development: Innovation Gaps and Economic Structure in Latin America

Author

Listed:
  • Eva Paus

    (Mount Holyoke College)

  • Mike Robinson

    (Mount Holyoke College)

Abstract

In this paper, we analyze how firm-level capabilities and characteristics affect firm innovation activities and innovation outputs in seven Latin American countries in 2016. We include eight innovation activities in accordance with OECD/Eurostat. Using data from the World Bank Enterprise Surveys for manufacturing and services, we distinguish two steps in the innovation process: firm engagement with innovation inputs and the translation of innovation inputs into innovation outputs. The empirical results demonstrate the importance of considering the broad spectrum of innovation activities rather than only focusing on R&D for the production of innovation outputs. The estimates underscore the significance of the impact of economic structure (firm size and sector) on innovation focusing at the micro level. They also suggest a role for government policies in reducing innovation gaps.

Suggested Citation

  • Eva Paus & Mike Robinson, 2024. "The Challenge of Productivity-Based Development: Innovation Gaps and Economic Structure in Latin America," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(2), pages 277-305, April.
  • Handle: RePEc:pal:eurjdr:v:36:y:2024:i:2:d:10.1057_s41287-023-00590-0
    DOI: 10.1057/s41287-023-00590-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41287-023-00590-0
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/s41287-023-00590-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mohammed Seid Hussen & Murat Çokgezen, 2020. "Analysis of Factors Affecting Firm Innovation: An Empirical Investigation for Ethiopian Firms," Journal of African Business, Taylor & Francis Journals, vol. 21(2), pages 169-192, June.
    2. Adedamola D. Adeyeye & Oluseye O. Jegede & Adekemi J. Oluwadare & Folake S. Aremu, 2016. "Micro-level determinants of innovation: analysis of the Nigerian manufacturing sector," Innovation and Development, Taylor & Francis Journals, vol. 6(1), pages 1-14, April.
    3. Fernandez, Viviana, 2017. "The finance of innovation in Latin America," International Review of Financial Analysis, Elsevier, vol. 53(C), pages 37-47.
    4. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    5. Abramo, Laís, 2022. "Policies to address the challenges of existing and new forms of informality in Latin America," Políticas Sociales 47774, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. Ha-Joon Chang & Antonio Andreoni, 2021. "Bringing Production Back into Development: An introduction," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 165-178, April.
    7. Eva Paus, 2020. "Innovation Strategies Matter: Latin America’s Middle-Income Trap Meets China and Globalisation," Journal of Development Studies, Taylor & Francis Journals, vol. 56(4), pages 657-679, April.
    8. Faïz Gallouj & Paul Windrum, 2009. "Services and services innovation," Journal of Evolutionary Economics, Springer, vol. 19(2), pages 141-148, April.
    9. Eva Paus & Michael Robinson & Fiona Tregenna, 2022. "Firm innovation in Africa and Latin America: Heterogeneity and country context [Technological and non-technological innovation and productivity in services vis a vis manufacturing in Uruguay]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(2), pages 338-357.
    10. Fernanda de Negri & Mariano Laplane, 2009. "Fatores Locacionais e o Investimento Estrangeiro em Pesquisa e desenvolvimento: Evidências para o Brasil, Argentina e México," Discussion Papers 1454, Instituto de Pesquisa Econômica Aplicada - IPEA.
    11. D’Este, Pablo & Iammarino, Simona & Savona, Maria & von Tunzelmann, Nick, 2012. "What hampers innovation? Revealed barriers versus deterring barriers," Research Policy, Elsevier, vol. 41(2), pages 482-488.
    12. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    13. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    14. Paus, Eva & Robinson, Michael, 2022. "Firm-level innovation, government policies and the middle-income trap: insights from five Latin American economies," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    15. Bottega, Ana & Romero, João P., 2021. "Innovation, export performance and trade elasticities across different sectors," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 174-184.
    16. Mariana Mazzucato, 2013. "Financing innovation: creative destruction vs. destructive creation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(4), pages 851-867, August.
    17. Walid Hadhri & Rigas Arvanitis & Hatem M’Henni, 2016. "Determinants of innovation activities in small and open economies: the Lebanese business sector," Journal of Innovation Economics, De Boeck Université, vol. 0(3), pages 77-107.
    18. Luis Rubalcaba & Diego Aboal & Paula Garda, 2016. "Service Innovation in Developing Economies: Evidence from Latin America and the Caribbean," Journal of Development Studies, Taylor & Francis Journals, vol. 52(5), pages 607-626, May.
    19. Claudia Fuentes & Fernando Santiago & Serdal Temel, 2020. "Perception of innovation barriers by successful and unsuccessful innovators in emerging economies," The Journal of Technology Transfer, Springer, vol. 45(4), pages 1283-1307, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Misraku Molla Ayalew & Zhang Xianzhi & Yidersal Dagnaw Dinberu & Demis Hailegebreal Hailu, 2020. "The Determinants of Firm’s Innovation in Africa," Journal of Industry, Competition and Trade, Springer, vol. 20(3), pages 527-567, September.
    2. Paus, Eva & Robinson, Michael, 2022. "Firm-level innovation, government policies and the middle-income trap: insights from five Latin American economies," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    3. Peters, Bettina & Riley, Rebecca & Siedschlag, Iulia & Vahter, Priit & McQuinn, John, 2014. "Innovation and Productivity in Services:Evidence from Germany, Ireland and the United Kingdom," Papers WP480, Economic and Social Research Institute (ESRI).
    4. Juan R. Perilla Jiménez & Thomas H. W. Ziesemer, 2024. "Technology adoption, innovation policy and catching-up," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-24, April.
    5. Marco Túlio Dinali Viglioni & Mozar José Brito & Cristina Lelis Leal Calegario, 2020. "Innovation and R&D in Latin America and the Caribbean countries: a systematic literature review," Scientometrics, Springer;Akadémiai Kiadó, vol. 125(3), pages 2131-2167, December.
    6. Anabela Santos & Michele Cincera, 2022. "Determinants of financing constraints," Small Business Economics, Springer, vol. 58(3), pages 1427-1439, March.
    7. Abderazak Bakhouche, 2022. "Assessing the Innovation-finance Nexus for SMEs: Evidence from the Arab Region (MENA)," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1875-1895, September.
    8. Jaureguy, Micaela Vidal & Bianchi, Carlos & Blanchard, Pablo, 2023. "Financial and knowledge barriers to innovation: Complementary and substitution effects on innovative effort," Research Policy, Elsevier, vol. 52(7).
    9. Frank Crowley & Jane Bourke, 2017. "The Influence Of Human Resource Management Systems On Innovation: Evidence From Irish Manufacturing And Service Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-28, January.
    10. Andre Lorentz & Tommaso Ciarli & Maria Savona & Marco Valente, 2019. "Structural Transformations and Cumulative Causation: Towards an Evolutionary Micro-foundation of the Kaldorian Growth Model," Working Papers of BETA 2019-15, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    11. Crass, Dirk & Schwiebacher, Franz, 2013. "Do trademarks diminish the substitutability of products in innovative knowledge-intensive services?," ZEW Discussion Papers 13-061, ZEW - Leibniz Centre for European Economic Research.
    12. repec:lic:licosd:20308 is not listed on IDEAS
    13. Benavente, José Miguel & Zuñiga, Pluvia, 2022. "How Does Market Competition Affect Firm Innovation Incentives in Emerging Countries? Evidence from Chile and Colombia," IDB Publications (Working Papers) 12198, Inter-American Development Bank.
    14. Bettina Peters & Rebecca Riley & Iulia Siedschlag & Priit Vahter & John McQuinn, 2018. "Internationalisation, innovation and productivity in services: evidence from Germany, Ireland and the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(3), pages 585-615, August.
    15. Montresor, Sandro & Vezzani, Antonio, 2015. "The production function of top R&D investors: Accounting for size and sector heterogeneity with quantile estimations," Research Policy, Elsevier, vol. 44(2), pages 381-393.
    16. Fulvio Castellacci, 2007. "Technological regimes and sectoral differences in productivity growth ," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(6), pages 1105-1145, December.
    17. Lopez-Rodriguez, Jesus & Martinez-Lopez, Diego, 2017. "Looking beyond the R&D effects on innovation: The contribution of non-R&D activities to total factor productivity growth in the EU," Structural Change and Economic Dynamics, Elsevier, vol. 40(C), pages 37-45.
    18. Castelnovo, Paolo & Florio, Massimo & Forte, Stefano & Rossi, Lucio & Sirtori, Emanuela, 2018. "The economic impact of technological procurement for large-scale research infrastructures: Evidence from the Large Hadron Collider at CERN," Research Policy, Elsevier, vol. 47(9), pages 1853-1867.
    19. Daniel Nepelski & Giuditta De Prato, 2020. "Technological complexity and economic development," Review of Development Economics, Wiley Blackwell, vol. 24(2), pages 448-470, May.
    20. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    21. Maria Savona, 2021. "Revisiting High Development Theory to Explain Upgrading Prospects in Business Services Global Value Chains," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 206-226, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:eurjdr:v:36:y:2024:i:2:d:10.1057_s41287-023-00590-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.