Firm Innovation and Productivity in Latin America and the by Inter-American Development Bank, Matteo Grazzi, Carlo

By Inter-American Development Bank, Matteo Grazzi, Carlo Pietrobelli

This quantity makes use of the research of multinational dynamics to enquire the criteria combating swifter productiveness progress in Latin the United States and the Caribbean, pushing earlier the bounds of conventional macroeconomic analyses. each one bankruptcy is devoted to an exam of a distinct issue affecting company productiveness - innovation, ICT utilization, on-the-job-training, company age, entry to credits, and overseas linkages - highlighting the variations in company features, behaviors, and techniques. by way of showcasing this extraordinary heterogeneity, this assortment demanding situations nearby policymakers to appear past one-size-fits-all strategies and create balanced coverage mixes adapted to unique company wishes.

This booklet is open entry lower than a CC BY-NC-ND 3.0 IGO license.

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7 % increase in the probability of innovating. Most of the relationship between expenditure and innovation is through product innovation rather than process innovation. Some firm capabilities, such as size, diversification, and fixed investment, are important determinants of innovation outputs beyond their influence on R&D investment. Again there are some interesting results related to factors that negatively affect innovation. There are no significant effects on the stock of knowledge, DETERMINANTS OF ENTERPRISE PERFORMANCE IN LATIN AMERICA … 17 but human capital is negatively correlated with innovative performance, and being a multinational has negative or non-significant effects.

Investment in research and development (R&D) tends to increase absorptive capacity, assimilation of knowledge, and catch up. Innovation and application of new ideas lead to the emergence of new sectors (structural change). In turn, changes in the production structure result in more complex chains of production, specialization, productivity growth, and a gradual expansion of more knowledge-intensive activities. At the macro-level, R&D, innovation, productivity growth, and per capita growth in GDP can reinforce each other in virtuous (or vicious) cycles.

Typically have a higher percentage of micro and small firms, the concentration in the services sector varies from 50 to 84 %, and there are considerable differences in ICT penetration rates. Then, the authors deepen the analysis and discuss the characteristics of human capital in Caribbean firms from two perspectives: entrepreneurs and workforce. Considering both firm owners and managers to be entrepreneurs, the authors find that previous experience varies widely throughout the region. In general, entrepreneurs tend to have previously been employed (either in managerial or non-managerial positions), but in some countries there is a significant percentage that transitioned directly from unemployment to being a top manager.

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