Explaining Differences in the Returns to R&D in Argentina : The Role of Contextual Factors and Complementarities
Argentina's private investment in research and development is well below that of its peers. One important reason may be low and very heterogeneous returns to research and development activities on productivity. This paper uses novel microdata...
| Main Authors: | , , , |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/875751587646359023/Explaining-Differences-in-the-Returns-to-R-D-in-Argentina-The-Role-of-Contextual-Factors-and-Complementarities http://hdl.handle.net/10986/33666 |
| Summary: | Argentina's private investment in
research and development is well below that of its peers.
One important reason may be low and very heterogeneous
returns to research and development activities on
productivity. This paper uses novel microdata to estimate
the returns to research and development and understand the
contextual factors that shape their heterogeneity. The paper
groups these context-based factors into knowledge
complementary factors (that is, factors that affect the
returns via learning capabilities from external sources of
knowledge) and market complementary factors (factors that
act via business capabilities to appropriate the returns to
research and development investments). The paper
hypothesizes that the effects of contextual factors depend
on firms' management capabilities and attitudes
(innovative capacity), which determine firms' ability
to benefit from the context. The findings suggest that the
returns are indeed heterogeneous across regions and sectors,
and these results depend on some context-based factors,
which can boost or depress the returns to R&D. The
results have important policy implications, considering the
effectiveness of innovation policies, need for adapting to
specific regions and sectors, and maximization of the impact
of these factors on the returns to research and development. |
|---|