Date Added: Oct 2010
This paper uses two sources of information and different methodologies to analyze the causal effect of product and process innovation on productivity in the Chilean manufacturing industry during the past decade. In general, the evidence suggests there is not a contemporaneous effect of product innovation on productivity, but there is a positive effect of process innovation. This not significant effect of product innovation contrasts with evidence of studies for other countries. However, the results show the presence of lagged effects product innovation on productivity two years after innovation.