Northern and Southern Innovativity: A Comparison across European and Latin-American Countries

The European Journal of Development Research 20.2 (2008): 219-239.

Posted: 5 Aug 2009 Last revised: 28 Mar 2015

See all articles by Julio D. Raffo

Julio D. Raffo

WIPO - Economics and Statistics Division

Stephane Lhuillery

Neoma Business School; University of Strasbourg - Bureau of Economic Theory and Application (BETA)

Luis Miotti

Independent; Université Paris XIII Nord

Date Written: June 1, 2008

Abstract

This paper compares the role of innovation and economic performance across European and Latin American countries, using firm-level data from France, Spain, Switzerland, Argentina, Brazil and Mexico. We implement a standard structural model linking R&D intensity, innovation and productivity. We find evidence revealing structural differences between Europe and Latin America, but also the presence of heterogeneity within each. In particular, firms tend to engage in innovation activities in order to achieve better economic performance on a similar basis among countries, but their interaction with national systems is weaker in developing countries. The fact of being a foreign subsidiary of a foreign multinational is found to have a heterogeneous effect on innovativity, whereas it leads to increased productivity in every country.

Keywords: R&D, innovation, productivity, developing countries, MNEs

JEL Classification: O12, O57, O3

Suggested Citation

Raffo, Julio D. and Lhuillery, Stephane and Miotti, Luis, Northern and Southern Innovativity: A Comparison across European and Latin-American Countries (June 1, 2008). The European Journal of Development Research 20.2 (2008): 219-239., Available at SSRN: https://ssrn.com/abstract=1426049

Julio D. Raffo (Contact Author)

WIPO - Economics and Statistics Division ( email )

34, chemin des Colombettes
Geneva 20, 1211
Switzerland

Stephane Lhuillery

Neoma Business School ( email )

1 Rue du Maréchal Juin
Mont Saint Aignan Cedex, 76825
France

University of Strasbourg - Bureau of Economic Theory and Application (BETA) ( email )

France

Luis Miotti

Independent ( email )

Université Paris XIII Nord ( email )

Avenue Jean Baptiste Clement
Villetaneuse, Seine Saint Denis 93430
France

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