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External sources of techonological innovation in Chilean manufacturating industry

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  • Roberto Álvarez

Abstract

There are several arguments in the literature regarding that more open economies would grow faster in the long term. Nevertheless, the channels through which openness increases growth have not been clearly identified in empirical analysis. In this article, we study if outward orientation variables have a positive impact on technological innovation, which is one of the most important sources of productivity growth. Using microeconomic data for Chilean manufacturing industry, we identify the effect of three main mechanisms of technological absorption: exports, direct foreign investment and purchase of foreign technical licenses. The results suggest that exports increase significantly technological innovation. In addition, we found causality in both ways. Technological innovation increases the probability of exporting. The other two channels; direct foreign investment and technical licenses, would be less important, because they only affect a reduced number of technological innovation indicators.

Suggested Citation

  • Roberto Álvarez, 2001. "External sources of techonological innovation in Chilean manufacturating industry," Estudios de Economia, University of Chile, Department of Economics, vol. 28(1 Year 20), pages 53-68, June.
    • Handle: RePEc:udc:esteco:v:28:y:2001:i:1:p:53-68
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    References listed on IDEAS

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    More about this item

    Keywords

    Innovation; technological absorption; productivity.;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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