Innovation and productive heterogeneity in Argentinean Industry

Buenos Aires

Encuentro; Latin America Convening. YSI Economics of Innovation Group; 2018

Institute for New Economic Thinking

This study evaluates the impact of innovation on productivity in Argentineanmanufacturing firms and analyzes how this process is being conditioned by the technoproductive heterogeneity that shapes this economy. Using data from the National Survey of Employment and Innovation Dynamics (ENDEI) for industrial companies, we estimate a model based on CDM framework (Crèpon, Duguet y Mairesse, 1998) for innovation drivers in Argentina during 2010-2012. In order to identify constraints imposed by structural heterogeneity, we develop a structural analysis for industrial areas classified according to Porta, Santarcángelo y Schteingart (2014). Our findings confirm that innovation process has significant impacts over manufacturing productivity. Although, results for defined industrial sectors are notably varied, expressing them as a result of the bearing of structural heterogeneity that characterizes this economy..