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Human Capital, Innovation and Productivity in Colombian Enterprises: A Structural Approach using Instrumental Variables

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  • Ramirez, S
  • Gallego, J
  • Tamayo, M

Abstract

In this paper we explore the R&D-innovation-productivity linkage for the Colombian manufacturing industry, paying special attention to the role of human capital. Using data from two firm-level surveys such as the Survey of Development and Technological Innovation (EDIT) and the Annual Manufacturing Survey, we extended the model of Crepon, Duget and Mairesse (hereafter CDM) due to Crepon et al. [1998] by including human capital at the investment decision stage. We implement an instrumental variable methodology to correct the potential endogeneity that may arise when including human capital into the model. Our results suggest that human capital has a causal efect on the research and development (R&D) investment decisions and the innovation behavior of the firm and, finally increasing the labor productivity of the firm. The conclusions of our work highlight the relevance of human capital in the CDM-type of literature and contrast with the relative little importance that this variable has received in this kind of models.

Suggested Citation

  • Ramirez, S & Gallego, J & Tamayo, M, 2019. "Human Capital, Innovation and Productivity in Colombian Enterprises: A Structural Approach using Instrumental Variables," Documentos de trabajo - Alianza EFI 18869, Alianza EFI.
    • Handle: RePEc:col:000561:018869
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    1. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
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    Cited by:

    1. Mehmet Ugur & Marco Vivarelli, 2021. "Innovation, firm survival and productivity: the state of the art," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(5), pages 433-467, July.
    2. Mehmet Ugur & Marco Vivarelli, 2020. "Technology, industrial dynamics and productivity: a critical survey," DISCE - Quaderni del Dipartimento di Politica Economica dipe0011, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    3. 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.
    4. Ugur, Mehmet & Vivarelli, Marco, 2020. "The role of innovation in industrial dynamics and productivity growth: a survey of the literature," MERIT Working Papers 2020-038, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    More about this item

    Keywords

    Innovation; Productivity; Human Capital;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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