Abstract

KATO-VIDAL, Enrique Leonardo. Productivity and Innovation in Small and Medium Enterprises. estud.gerenc. [online]. 2019, vol.35, n.150, pp.38-46. ISSN 0123-5923.  https://doi.org/10.18046/j.estger.2019.150.2909.

Innovation is a key component of the competitive advantages of enterprises. The purpose of this paper is to test whether investment in innovation affects the productivity of small and medium-sized enterprises. The innovation-competitiveness relationship was studied in a large sample of companies in Mexico. A regression analysis was applied in two stages to avoid inconsistent estimators. First, the determinants of innovation were established, and then the impact of innovation on productivity was estimated. A positive link was found between innovation and productivity in various manufacturing and non-manufacturing sectors. The calculated impact of innovation on productivity is equivalent to the effect of investment in computer equipment.

Keywords : research and development; productivity; SME; Mexico.

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