Innovation and  Productivity Across Mexican Manufacturing Firms

Flor Brown; Georgina Alenka Guzmán Chávez

doi:10.4067/S0718-27242014000400003

Authors

Flor Brown Universidad Nacional Autónoma de México
Georgina Alenka Guzmán Chávez Universidad Nacional Autónoma de México

DOI:

https://doi.org/10.4067/S0718-27242014000400003

Keywords:

technological efforts, innovation, productivity, CDM model, manufacturing industry, Mexican firms

Abstract

Following the Crépon-Duguet-Mairesse Model (1998), using a database with 2,078 Mexican manufacturing establishments from 2004 to 2006, adapting available proxy variables and proposing a different productivity estimation, this article sets out: Which is their innovation propensity? Which factors push on their innovation efforts? Are these efforts and the innovation favoring labor productivity? The main findings are: Mexican manufacturing establishments with a higher innovation propensity are the largest, with high technological intensity and market share. Advertising, knowledge appropriability, FDI, TT and access to credit have a positive effect on innovation efforts. Moreover, the innovation effort, together with export levels, FDI and access to technology have influenced the innovation of new processes and/or designs, particularly in local firms as compared to foreign firms. Finally, the variables: innovation, labour remunerations and capital intensity have a substantial effect on labor productivity and at a lower level market share, FDI and total quality control.

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