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Innovation, public support and productivity in colombia

Author

Listed:
  • Isabel Busom

    (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)

  • Jorge-Andrés Vélez-Ospina

    (Departament d'Empresa, Universitat Autonoma de Barcelona)

Abstract

We investigate the association between perceived barriers to innovation and the allocation of public support for innovation in manufacturing and service industries in Colombia, as well as the potential heterogeneity of returns to innovation across the firm-level productivity distribution. We extend the CDM recursive system by including an equation for the allocation of direct support and using quantile regression methods to estimate the productivity equation. We find some differences across manufacturing and service industries. Financing constraints are correlated with obtaining public support in manufacturing and in some services, but in knowledge intensive services (KIS) barriers associated with regulations are more significant. The introduction of innovations increases mostly the productivity of firms below the median of the productivity distribution, especially in services. Increasing human capital would boost productivity of firms in all industries, providing support to the hypothesis that human capital is indeed a bottleneck for productivity growth across the board in Colombia. We conclude that addressing factors that hinder innovation by low productivity firms in all service industries could significantly contribute to increasing productivity and reduce its dispersion.

Suggested Citation

  • Isabel Busom & Jorge-Andrés Vélez-Ospina, 2017. "Innovation, public support and productivity in colombia," Working Papers wpdea1701, Department of Applied Economics at Universitat Autonoma of Barcelona.
    • Handle: RePEc:uab:wprdea:wpdea1701
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    Citations

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    Cited by:

    1. Isabel Busom & Jorge-Andrés Vélez-Ospina, 2021. "Subsidising innovation over the business cycle," Industry and Innovation, Taylor & Francis Journals, vol. 28(6), pages 773-803, July.
    2. Zahler, Andrés & Goya, Daniel & Caamaño, Matías, 2022. "The primacy of demand and financial obstacles in hindering innovation," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    3. Vicent Alcántara & Emilio Padilla, 2021. "CO2 emissions of the construction sector in Spain during the real estate boom: Input–output subsystem analysis and decomposition," Journal of Industrial Ecology, Yale University, vol. 25(5), pages 1272-1283, October.
    4. Andrés, Lidia & Padilla, Emilio, 2018. "Driving factors of GHG emissions in the EU transport activity," Transport Policy, Elsevier, vol. 61(C), pages 60-74.
    5. Xiaojun Sun & Jing Tang & Shilong Li, 2022. "Promote Green Innovation in Manufacturing Enterprises in the Aspect of Government Subsidies in China," IJERPH, MDPI, vol. 19(13), pages 1-16, June.
    6. Gherhes, Cristian & Yu, Zhen & Vorley, Tim & Xue, Lan, 2023. "Technological trajectories as an outcome of the structure-agency interplay at the national level: Insights from emerging varieties of AI," World Development, Elsevier, vol. 168(C).
    7. Adiwan F. Aritenang, 2021. "The Importance of Agglomeration Economies and Technological Level on Local Economic Growth: the Case of Indonesia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 544-563, June.
    8. Seenaiah Kale & Badri Narayan Rath, 2018. "Does Innovation Enhance Productivity In Case Of Selected Indian Manufacturing Firms?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(05), pages 1225-1250, November.
    9. Tyce, Matthew, 2020. "Beyond the neoliberal-statist divide on the drivers of innovation: A political settlements reading of Kenya’s M-Pesa success story," World Development, Elsevier, vol. 125(C).
    10. Simón Ramírez & Juan Gallego & Mery Tamayo, 2020. "Human capital, innovation and productivity in Colombian enterprises: a structural approach using instrumental variables," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 29(6), pages 625-642, August.
    11. Jugend, Daniel & Fiorini, Paula De Camargo & Armellini, Fabiano & Ferrari, Aline Gabriela, 2020. "Public support for innovation: A systematic review of the literature and implications for open innovation," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    12. Ghouri, Arsalan Mujahid & Akhtar, Pervaiz & Haq, Mirza A. & Mani, Venkatesh & Arsenyan, Gayane & Meyer, Martin, 2021. "Real-time information sharing, customer orientation, and the exploration of intra-service industry differences: Malaysia as an emerging market," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    13. Ondřej Dvouletý & Ivana Blažková, 2019. "The Impact of Public Grants on Firm-Level Productivity: Findings from the Czech Food Industry," Sustainability, MDPI, vol. 11(2), pages 1-24, January.
    14. Natália Barbosa & Ana Paula Faria, 2023. "Science and productivity in European Firms: How do regional innovation modes matter?," GEE Papers 0175, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jul 2023.
    15. Roth Cardoso, Hugo Henrique & Dantas Gonçalves, Adriana & Dambiski Gomes de Carvalho, Gustavo & Gomes de Carvalho, Hélio, 2020. "Evaluating innovation development among Brazilian micro and small businesses in view of management level: Insights from the local innovation agents program," Evaluation and Program Planning, Elsevier, vol. 80(C).
    16. 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.
    17. Edeh, Jude N. & Acedo, Francisco J., 2021. "External supports, innovation efforts and productivity: Estimation of a CDM model for small firms in developing countries," Technological Forecasting and Social Change, Elsevier, vol. 173(C).

    More about this item

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • L8 - Industrial Organization - - Industry Studies: Services
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General

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