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...

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Main Authors:	Arza, Valeria, Cirera, Xavier, Colonna, Agustina, Lopez, Emanuel
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2020
Subjects:	INTERNATIONAL STANDARD INDUSTRIAL CLASSIFICATION RESEARCH AND DEVELOPMENT RATE OF RETURN R&D PRODUCTIVITY COMPLEMENTARY FACTORS RETURNS TO RESEARCH AND DEVELOPMENT MANAGEMENT CAPABILITY INNOVATIVE CAPACITY
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

id	okr-10986-33666
recordtype	oai_dc
spelling	okr-10986-336662022-09-20T00:11:54Z Explaining Differences in the Returns to R&D in Argentina : The Role of Contextual Factors and Complementarities Arza, Valeria Cirera, Xavier Colonna, Agustina Lopez, Emanuel INTERNATIONAL STANDARD INDUSTRIAL CLASSIFICATION RESEARCH AND DEVELOPMENT RATE OF RETURN R&D PRODUCTIVITY COMPLEMENTARY FACTORS RETURNS TO RESEARCH AND DEVELOPMENT MANAGEMENT CAPABILITY INNOVATIVE CAPACITY 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. 2020-04-30T15:52:09Z 2020-04-30T15:52:09Z 2020-04 Working Paper 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 English Policy Research Working Paper;No. 9219 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Argentina
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INTERNATIONAL STANDARD INDUSTRIAL CLASSIFICATION RESEARCH AND DEVELOPMENT RATE OF RETURN R&D PRODUCTIVITY COMPLEMENTARY FACTORS RETURNS TO RESEARCH AND DEVELOPMENT MANAGEMENT CAPABILITY INNOVATIVE CAPACITY
spellingShingle	INTERNATIONAL STANDARD INDUSTRIAL CLASSIFICATION RESEARCH AND DEVELOPMENT RATE OF RETURN R&D PRODUCTIVITY COMPLEMENTARY FACTORS RETURNS TO RESEARCH AND DEVELOPMENT MANAGEMENT CAPABILITY INNOVATIVE CAPACITY Arza, Valeria Cirera, Xavier Colonna, Agustina Lopez, Emanuel Explaining Differences in the Returns to R&D in Argentina : The Role of Contextual Factors and Complementarities
geographic_facet	Latin America & Caribbean Argentina
relation	Policy Research Working Paper;No. 9219
description	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.
format	Working Paper
author	Arza, Valeria Cirera, Xavier Colonna, Agustina Lopez, Emanuel
author_facet	Arza, Valeria Cirera, Xavier Colonna, Agustina Lopez, Emanuel
author_sort	Arza, Valeria
title	Explaining Differences in the Returns to R&D in Argentina : The Role of Contextual Factors and Complementarities
title_short	Explaining Differences in the Returns to R&D in Argentina : The Role of Contextual Factors and Complementarities
title_full	Explaining Differences in the Returns to R&D in Argentina : The Role of Contextual Factors and Complementarities
title_fullStr	Explaining Differences in the Returns to R&D in Argentina : The Role of Contextual Factors and Complementarities
title_full_unstemmed	Explaining Differences in the Returns to R&D in Argentina : The Role of Contextual Factors and Complementarities
title_sort	explaining differences in the returns to r&d in argentina : the role of contextual factors and complementarities
publisher	World Bank, Washington, DC
publishDate	2020
url	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
_version_	1764479273884712960

Explaining Differences in the Returns to R&D in Argentina : The Role of Contextual Factors and Complementarities

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