ICT, innovation, and firm productivity: New evidence from small local firms
This study analyzes new co-innovative sources
of labor productivity (i.e., ICT use, human capital and training, and new forms
of work organization) in small firms that produce for local markets. The study
presents an application of structural equation modeling (SEM) to 2009 survey
data for a representative sample of 464 SMEs in the province of Girona (Spain).
Results show that wage is the main determinant of labor productivity.
Furthermore, in contrast to evidence regarding larger firms, co-innovation does
not directly affect small local firms' productivity. The study establishes an
indirect relationship between co-innovation and productivity in firms that
initiate international expansion. The study also identifies guidelines for
public policy to improve productivity in small local firms.
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