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Technological and non-technological innovation and productivity in services vis-à-vis manufacturing sectors
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Technological and non-technological innovation and productivity in services vis-à-vis manufacturing sectors

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  • Diego Aboal
  • Paula Garda

Abstract

In this paper, the links between investment in innovation activities, innovation outputs (technological and non-technological innovation) and productivity in services vis-à-vis the manufacturing sector are explored using innovation survey data from Uruguay. The size of firms, their cooperation in R&D activities, the use of public financial support, patent protection and the use of market sources of information are very important drivers of the decision to invest in innovation activities across sectors. The main determinants of technological and non-technological innovations are the level of investment in innovation activities and the size of the firm. The results indicate that both technological and non-technological innovations are positively associated to productivity gains in services, but non-technological innovations have a more important role. The reverse happens for manufacturing, where technological innovations are more relevant for productivity.

Suggested Citation

  • Diego Aboal & Paula Garda, 2016. "Technological and non-technological innovation and productivity in services vis-à-vis manufacturing sectors," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(5), pages 435-454, July.
    • Handle: RePEc:taf:ecinnt:v:25:y:2016:i:5:p:435-454
    DOI: 10.1080/10438599.2015.1073478
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    1. Uppenberg, Kristian & Strauss, Hubert, 2010. "Innovation and productivity growth in the EU services sector," EIB Economic Surveys, European Investment Bank, number 2, sept-dec.
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    1. Aboal D. & Tacsir E., 2015. "Innovation and productivity in services and manufacturing : The role of ICT investment," MERIT Working Papers 2015-012, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Kazuhiro Takauchi & Tomomichi Mizuno, 2019. "Consumer-benefiting transport cost: The role of product innovation in a vertical structure," Discussion Papers 1911, Graduate School of Economics, Kobe University.
    3. Aboal, Diego & Perera, Marcelo & Tacsir, Ezequiel & Vairo, Maren, 2018. "A guide for the evaluation of programs of human capital training for science, technology and innovation," MERIT Working Papers 2018-031, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Ugur, Mehment & Vivarelli, Marco, 2020. "The role of innovation in industrial dynamics and productivity growth: a survey of the literature," GLO Discussion Paper Series 648, Global Labor Organization (GLO).
    5. Alarcón, José Carlos & Aguilar, Rocio & Galán, Jose Luis, 2019. "Determinants of innovation output in Spanish knowledge-intensive service firms: Stability analysis throughout the economic crisis of 2008," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 228-244.
    6. 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.
    7. Dragana Radicic & Jonathan Pinto, 2019. "Collaboration with External Organizations and Technological Innovations: Evidence from Spanish Manufacturing Firms," Sustainability, MDPI, vol. 11(9), pages 1-31, April.
    8. Busom, Isabel & Vélez-Ospina, Jorge Andrés, 2017. "Innovation, Public Support, and Productivity in Colombia. A Cross-industry Comparison," World Development, Elsevier, vol. 99(C), pages 75-94.
    9. Fabíola Kaczam & Julio Cezar Mairesse Siluk & Gil Eduardo Guimaraes & Gilnei Luiz Moura & Wesley Vieira Silva & Claudimar Pereira Veiga, 2022. "Establishment of a typology for startups 4.0," Review of Managerial Science, Springer, vol. 16(3), pages 649-680, April.
    10. Brida, Juan Gabriel & Ladós, Valentina & Sicilia, Gabriela, 2021. "Eficiencia innovadora en el sector servicios: el caso de Uruguay. || Innovative efficiency in the service sector: the case of Uruguay," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 31(1), pages 240-258, June.
    11. 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.
    12. Crespi, G. & Tacsir, E. & Vargas, F., 2014. "Innovation and productivity in services: Empirical evidence from Latin America," MERIT Working Papers 2014-069, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Jianhua Zhang & Mohammad Shahidul Islam, 2020. "The Heterogeneous Impacts of R&D on Innovation in Services Sector: A Firm-Level Study of Developing ASEAN," Sustainability, MDPI, vol. 12(4), pages 1-22, February.

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