Trade and Innovation in Services : Evidence from a Developing Economy

Studies on innovation and international trade have traditionally focused on manufacturing because neither was seen as important for services. Moreover, the few existing studies on services focus only on industrial countries, although in many develo...

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Main Authors: Iacovone, Leonardo, Mattoo, Aaditya, Zahler, Andrés
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2013/06/17940726/trade-innovation-services-evidence-developing-economy-trade-innovation-services-evidence-developing-economy
http://hdl.handle.net/10986/15879
id okr-10986-15879
recordtype oai_dc
spelling okr-10986-158792021-04-23T14:03:26Z Trade and Innovation in Services : Evidence from a Developing Economy Iacovone, Leonardo Mattoo, Aaditya Zahler, Andrés ADOPTION OF TECHNOLOGIES BACK-OFFICE BALANCE OF PAYMENTS BUSINESS ACTIVITIES BUSINESS PROCESSES BUSINESS SERVICES COLLABORATION COMMODITIES COMMUNICATIONS TECHNOLOGY COMPETITIVENESS CONFIDENCE CONFIDENTIALITY CUSTOMER SERVICES CUSTOMIZATION CUSTOMS DATA COLLECTION DATA LIMITATIONS DESCRIPTION ECONOMIC ACTIVITY ELECTRICITY ELECTRONIC DELIVERY ENGINEERS EQUIPMENT EXCHANGE RATE EXPORT MARKETS FINANCIAL INVESTMENT FINANCIAL SERVICES FINANCIAL TRANSACTIONS FIXED COSTS FOREIGN INVESTMENT FRONT-OFFICE GOVERNMENT SERVICES HUMAN CAPITAL INDUSTRY PRODUCTIVITY INITIATIVE INNOVATION INTERNATIONAL STANDARDS INTERNATIONAL TRADE INTERNATIONALIZATION JUSTICE LICENSE LICENSE FEES LICENSES MANUFACTURING MANUFACTURING INDUSTRIES MARKET ECONOMIES MARKETING MULTINATIONAL OPEN ACCESS ORGANIZATIONAL INNOVATION OUTSOURCING PDF PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCT DESIGN PRODUCT INNOVATION PRODUCTIVITY QUALITY OF INNOVATION R&D REGIONAL DEVELOPMENT RENTING RESULT RESULTS SERVICES INNOVATION SERVICES INNOVATIONS TECHNOLOGICAL DEVELOPMENTS TECHNOLOGICAL INNOVATION TECHNOLOGICAL INNOVATIONS TRANSACTION WEB tradable services Studies on innovation and international trade have traditionally focused on manufacturing because neither was seen as important for services. Moreover, the few existing studies on services focus only on industrial countries, although in many developing countries services are already the largest sector in the economy and an important determinant of overall productivity growth. Using a recent firm-level innovation survey for Chile to compare the manufacturing and "tradable" services sector, this paper reveals some novel patterns. First, although services firms have on average a much lower propensity to export than manufacturing firms, services exports are less dominated by large firms and tend to be more skill intensive than manufacturing exports. Second, services firms appear to be as innovative as -- and in some cases more innovative than -- manufacturing firms, in terms of both inputs and outputs of "technological" innovative activity, although services innovations more often take a "non-technological" form. Third, services exporters (like manufacturing exporters) tend to be significantly more innovative than non-exporters, with a wider gap for innovations close to the global technological frontier. These findings suggest that the growing faith in services as a source of both trade and innovative dynamism may not be misplaced. 2013-09-26T19:07:23Z 2013-09-26T19:07:23Z 2013-06 http://documents.worldbank.org/curated/en/2013/06/17940726/trade-innovation-services-evidence-developing-economy-trade-innovation-services-evidence-developing-economy http://hdl.handle.net/10986/15879 English en_US Policy Research Working Paper;No. 6520 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Chile
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ADOPTION OF TECHNOLOGIES
BACK-OFFICE
BALANCE OF PAYMENTS
BUSINESS ACTIVITIES
BUSINESS PROCESSES
BUSINESS SERVICES
COLLABORATION
COMMODITIES
COMMUNICATIONS TECHNOLOGY
COMPETITIVENESS
CONFIDENCE
CONFIDENTIALITY
CUSTOMER SERVICES
CUSTOMIZATION
CUSTOMS
DATA COLLECTION
DATA LIMITATIONS
DESCRIPTION
ECONOMIC ACTIVITY
ELECTRICITY
ELECTRONIC DELIVERY
ENGINEERS
EQUIPMENT
EXCHANGE RATE
EXPORT MARKETS
FINANCIAL INVESTMENT
FINANCIAL SERVICES
FINANCIAL TRANSACTIONS
FIXED COSTS
FOREIGN INVESTMENT
FRONT-OFFICE
GOVERNMENT SERVICES
HUMAN CAPITAL
INDUSTRY PRODUCTIVITY
INITIATIVE
INNOVATION
INTERNATIONAL STANDARDS
INTERNATIONAL TRADE
INTERNATIONALIZATION
JUSTICE
LICENSE
LICENSE FEES
LICENSES
MANUFACTURING
MANUFACTURING INDUSTRIES
MARKET ECONOMIES
MARKETING
MULTINATIONAL
OPEN ACCESS
ORGANIZATIONAL INNOVATION
OUTSOURCING
PDF
PRIVATE SECTOR
PRIVATE SECTOR DEVELOPMENT
PRODUCT DESIGN
PRODUCT INNOVATION
PRODUCTIVITY
QUALITY OF INNOVATION
R&D
REGIONAL DEVELOPMENT
RENTING
RESULT
RESULTS
SERVICES INNOVATION
SERVICES INNOVATIONS
TECHNOLOGICAL DEVELOPMENTS
TECHNOLOGICAL INNOVATION
TECHNOLOGICAL INNOVATIONS
TRANSACTION
WEB
tradable services
spellingShingle ADOPTION OF TECHNOLOGIES
BACK-OFFICE
BALANCE OF PAYMENTS
BUSINESS ACTIVITIES
BUSINESS PROCESSES
BUSINESS SERVICES
COLLABORATION
COMMODITIES
COMMUNICATIONS TECHNOLOGY
COMPETITIVENESS
CONFIDENCE
CONFIDENTIALITY
CUSTOMER SERVICES
CUSTOMIZATION
CUSTOMS
DATA COLLECTION
DATA LIMITATIONS
DESCRIPTION
ECONOMIC ACTIVITY
ELECTRICITY
ELECTRONIC DELIVERY
ENGINEERS
EQUIPMENT
EXCHANGE RATE
EXPORT MARKETS
FINANCIAL INVESTMENT
FINANCIAL SERVICES
FINANCIAL TRANSACTIONS
FIXED COSTS
FOREIGN INVESTMENT
FRONT-OFFICE
GOVERNMENT SERVICES
HUMAN CAPITAL
INDUSTRY PRODUCTIVITY
INITIATIVE
INNOVATION
INTERNATIONAL STANDARDS
INTERNATIONAL TRADE
INTERNATIONALIZATION
JUSTICE
LICENSE
LICENSE FEES
LICENSES
MANUFACTURING
MANUFACTURING INDUSTRIES
MARKET ECONOMIES
MARKETING
MULTINATIONAL
OPEN ACCESS
ORGANIZATIONAL INNOVATION
OUTSOURCING
PDF
PRIVATE SECTOR
PRIVATE SECTOR DEVELOPMENT
PRODUCT DESIGN
PRODUCT INNOVATION
PRODUCTIVITY
QUALITY OF INNOVATION
R&D
REGIONAL DEVELOPMENT
RENTING
RESULT
RESULTS
SERVICES INNOVATION
SERVICES INNOVATIONS
TECHNOLOGICAL DEVELOPMENTS
TECHNOLOGICAL INNOVATION
TECHNOLOGICAL INNOVATIONS
TRANSACTION
WEB
tradable services
Iacovone, Leonardo
Mattoo, Aaditya
Zahler, Andrés
Trade and Innovation in Services : Evidence from a Developing Economy
geographic_facet Chile
relation Policy Research Working Paper;No. 6520
description Studies on innovation and international trade have traditionally focused on manufacturing because neither was seen as important for services. Moreover, the few existing studies on services focus only on industrial countries, although in many developing countries services are already the largest sector in the economy and an important determinant of overall productivity growth. Using a recent firm-level innovation survey for Chile to compare the manufacturing and "tradable" services sector, this paper reveals some novel patterns. First, although services firms have on average a much lower propensity to export than manufacturing firms, services exports are less dominated by large firms and tend to be more skill intensive than manufacturing exports. Second, services firms appear to be as innovative as -- and in some cases more innovative than -- manufacturing firms, in terms of both inputs and outputs of "technological" innovative activity, although services innovations more often take a "non-technological" form. Third, services exporters (like manufacturing exporters) tend to be significantly more innovative than non-exporters, with a wider gap for innovations close to the global technological frontier. These findings suggest that the growing faith in services as a source of both trade and innovative dynamism may not be misplaced.
format Publications & Research :: Policy Research Working Paper
author Iacovone, Leonardo
Mattoo, Aaditya
Zahler, Andrés
author_facet Iacovone, Leonardo
Mattoo, Aaditya
Zahler, Andrés
author_sort Iacovone, Leonardo
title Trade and Innovation in Services : Evidence from a Developing Economy
title_short Trade and Innovation in Services : Evidence from a Developing Economy
title_full Trade and Innovation in Services : Evidence from a Developing Economy
title_fullStr Trade and Innovation in Services : Evidence from a Developing Economy
title_full_unstemmed Trade and Innovation in Services : Evidence from a Developing Economy
title_sort trade and innovation in services : evidence from a developing economy
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2013/06/17940726/trade-innovation-services-evidence-developing-economy-trade-innovation-services-evidence-developing-economy
http://hdl.handle.net/10986/15879
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