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Author:Kannebley, S. Jr.
Sekkel, J.V.
Araujo, B.C.
Title:Economic performance of Brazilian manufacturing firms: a counterfactual analysis of innovation impacts
Journal:Small business economics
2010 : APR, VOL. 34:3, p. 339-353
Index terms:technological innovation
manufacturing
company performance
Brazil
South America
models
Language:eng
Abstract:This article evaluates whether innovators outperform non-innovators in Brazilian manufacturing from 1996 to 2002. By employing propensity score matching techniques, a simple theoretical model is tested for the impacts of technological innovation (treatment) on innovating firms (treated). Correcting for the survivorship bias in the period, it was verified that, on an average, the accomplishment of technological innovations produces positive and significant impacts on the employment, the net revenue, the labour productivity, the capital productivity, and market share of the firms. Yet, this result was not found for the mark-up. In particular, the net revenue reflects more robustly the impacts of the innovations. It was also found that the conjunction of product and process innovations, relative to other forms of innovation, presents the stronger impacts on the performance of Brazilian firms.
SCIMA record nr: 274409
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