Resumen
We expand the research line about how Research and Development affects
innovation and productivity at a plant level in Chile (Benavente & Crespi, 1996,
and Benavente, 2002). We find that R&D expenditures are highly persistent in
time where firm size accurately predicts the amount of resources invested in
these activities. On the other hand, commercial success of new innovations are
highly dependent on R&D expenditures, plant size and the continuous
observation of new and innovative ideas generated both inside and outside the
plant. Finally, mid run plant´s productivity is positively affected by technological
innovations introduced in the past and most important, if the plant received
some public support for its financing. Results show that for each subsided dollar,
productivity rises, on average, equivalent to five dollars in value.