Technological performance, economic performance and behaviour: a study of Argentinean firms during the 1990s.

scale 0-5 Process innovation 0.97 1.00 1.50 1.00 -0.53 ***

Results: Likert

scale 0-3 Innovation in 3.25 3.00 4.64 5.00 -1.39 ***

Management

Results: Likert

scale 0-7

Size

Small: below 5% Big: above 5% of

of sector sales sector sales Difference

mean median mean median mean Sig N FIRMS 1231 403 Total Sales (S) 11292 4842 75950 25984 -64658 *** Sales over employ- 87.66 63.53 203.66 106.90 -116.00 ***

ment (S/EMP) Total Investment 519 68 3618 656 -3099 ***

(IFA) Investment over 6.82% 1.47% 16.72% 2.25% -9.90%

sales (IFA/S) R&D (RD) 26.69 0.00 101.39 0.00 -75 *** R&D intensity 0.22% 0.00% 0.15% 0.00% 0.07%

(RD/S) Export coeffi- 6.36% 0.00% 12.18% 2.82% -5.82% ***

cient (E/S) Import coeffi- 7.09% 1.42% 13.33% 7.80% -6.24% ***

cient (M/S) Openess coefficient 13.45% 5.07% 25.51% 15.52% -12.06% ***

((EX+IM)/S) Sales of Unmodified 7.21% 0.00% 9.78% 0.00% -2.57% **

Goods over

Sales (SUG/S) Import of Final 1.07% 0.00% 3.81% 0.00% -2.74% ***

Goods over

Sales (MFG/S) Import of Capital 1.45% 0.00% 1.73% 0.59% -0.28%

Goods over

Sales (MKG/S) Product innovation 1.63 1.00 2.26 2.00 -0.63 ***

Results: Likert

scale 0-5 Process innovation 1.00 1.00 1.44 1.00 -0.43 ***

Results: Likert

scale 0-3 Innovation in 3.39 4.00 4.26 5.00 -0.86 ***

Management

Results: Likert

scale 0-7

Plant Age

Old: Created

Young: Created during ISI

after ISI period

period (in 1975 or

(after 1975) before) Difference

mean median mean median mean Sig N FIRMS 534 1075 Total Sales (S) 17279 4717 30242 9011 -12963 *** Sales over employ- 134.60 71.50 106.21 73.58 28 *

ment (S/EMP) Total Investment 1113 73 1284 153 -171

(IFA) Investment over 17.44% 1.56% 5.17% 1.72% 12.27% *

sales (IFA/S) R&D (RD) 22.64 0.00 53.61 0.00 -31 ** R&D intensity 0.22% 0.00% 0.19% 0.00% 0.03%

(RD/S) Export coeffi- 6.34% 0.00% 8.47% 1.07% -2.13% **

cient (E/S) Import coeffi- 6.83% 0.83% 9.49% 3.46% -2.66% ***

cient (M/S) Openess coefficient 13.18% 3.03% 17.95% 9.42% -4.77% ***

((EX+IM)/S) Sales of Unmodified 7.79% 0.00% 7.78% 0.00% 0.01%

Goods over

Sales (SUG/S) Import of Final 1.04% 0.00% 2.10% 0.00% -1.06% ***

Goods over

Sales (MFG/S) Import of Capital 1.23% 0.00% 1.68% 0.00% -0.45%

Goods over

Sales (MKG/S) Product innovation 1.64 1.00 1.86 2.00 -0.22 ***

Results: Likert

scale 0-5 Process innovation 0.99 1.00 1.17 1.00 -0.18 ***

Results: Likert

scale 0-3 Innovation in 3.45 4.00 3.69 4.00 -0.24 *

Management

Results: Likert

scale 0-7 *** Significant at 1%; ** Significant at 5%; * Significant at 10%. Source: Author's calculation based on The Survey TABLE 3: RANDOM EFFECTS MODEL ON LN SALES OVER EMPLOYMENTS

3.1: Ln Sales 3.2: Ln Sales

over employment over employment

Dep. Var. (ln (S/EMP)) (ln (S/EMP)) Ind. Var. Coef Z Sig Coef Z Sig Ln Investment 0.0293 8.42 *** 0.0263 7.28 *** in Fixed Assets (lnIFA) Sales of Unmodified -0.0334 -0.38 0.0047 0.05 Goods over Sales (SUG/S) Import of Final 1.0813 4.06 *** 1.1994 4.50 *** Goods over Sales (MFG/S) Import of Capital -0.4556 -3.34 *** -0.3766 -2.74 *** Goods over Sales (MKG/S) Exports over 0.0724 0.89 0.1206 1.47 Sales (E/S) Imports over 0.2406 1.99 ** 0.1649 1.35 Sales (M/S) Age (AGE) -0.0004 -0.50 -0.0010 -1.08 Market Share (MS) 2.1601 11.53 *** 2.0382 10.77 *** Foreign (DF) 0.2814 4.96 *** 0.2620 4.59 *** Group (DG) 0.2413 4.87 *** 0.2188 4.34 *** Sector (Ferraz) -0.0398 -2.89 *** -0.0474 -3.40 *** Results in Product 0.0336 1.71 * Innovation (prod_inn) Results in Process 0.0219 0.72 Innovation (proc_inn) Results in 0.0186 1.75 * Innovation in Management (org_inn) Results in Machinery associate to new processes (bkproc_inn) -0.0371 -0.76 Multiplicative dummy SIZE*SUG/S Multiplicative dummy DF*SUG/S Constant 4.0935 68.32 *** 4.0184 62.88 *** Model Specification Number of observations 2942 2830 Number of groups 1471 1415 Obs per group: Minimum 2 2 Average 2 2 Maximum 2 2 Overall R2 0.2005 0.2168 Wald chi2 562.37 585.06 Prob > chi2 0 0 Hausman Test ch2 117.25 110.93 Prob > chi2 0 0

3.3: Ln Sales

over employment

Dep. Var. (ln (S/EMP)) Ind. Var. Coef Z Sig Ln Investment 0.0260 7.23 *** in Fixed Assets (lnIFA) Sales of Unmodified -0.1497 -1.52 Goods over Sales (SUG/S) Import of Final 0.9791 3.55 *** Goods over Sales (MFG/S) Import of Capital -0.3819 -2.79 *** Goods over Sales (MKG/S) Exports over 0.1101 1.34 Sales (E/S) Imports over 0.1695 1.40 Sales (M/S) Age (AGE) -0.0012 -1.34 Market Share (MS) 1.8776 9.77 *** Foreign (DF) 0.2590 4.33 *** Group (DG) 0.2148 4.25 *** Sector (Ferraz) -0.0484 -3.48 *** Results in Product 0.0327 1.66 * Innovation (prod_inn) Results in Process 0.0226 0.74 Innovation (proc_inn) Results in 0.0182 1.71 * Innovation in Management (org_inn) Results in Machinery associate to new processes (bkproc_inn) -0.0355 -0.73 Multiplicative 0.7739 4.67 *** dummy SIZE*SUG/S Multiplicative -0.0099 -0.04 dummy DF*SUG/S Constant 4.0416 63.07 *** Model Specification Number of observations 2830 Number of groups 1415 Obs per group: Minimum 2 Average 2 Maximum 2 Overall R2 0.2195 Wald chi2 610.79 Prob > chi2 0 Hausman Test ch2 116.34 Prob > chi2 0 *** Significant at 1%; ** Significant at 5%; * Significant at 10%. Source: Author's calculation based on The Survey TABLE 4: TOBIT REGRESSION ON INVESTMENT IN R&D AND IN FIXED ASSETS (THOUSANDS OF PESOS)

4.2: Investment

Dep. Var. 4.1: R&D over sales in Fixed Asset

(RD/S) over sales (IFA/S) Ind. Var. Coef Z Sig Coef Z Sig Ln Employment 0.0080 7.76 *** 0.2279 6.39 *** (lnEMP) Sales of Unmodified -0.0097 -1.75 * -0.4235 -1.84 * Goods over Sales (SUG/S) Import of Final -0.0108 -0.72 0.1846 0.24 Goods over Sales (MFG/S) Import of Capital -0.0106 -1.27 1.1078 2.72 *** Goods over Sales (MKG/S) Exports over -0.0064 -0.94 0.0184 0.09 Sales (E/S) Imports over 0.0158 2.35 ** 0.1145 0.34 Sales (M/S) Age (AGE) 0.0001 1.09 -0.0018 -1.04 Market Share (MS) -0.0127 -1.24 -0.0815 -0.18 Foreign (DF) 0.0079 2.51 ** 0.0684 0.62 Group (DG) -0.0009 -0.31 0.0219 0.23 Sector (Ferraz) 0.0036 5.34 *** 0.0227 0.83 Multiplicative dummy SIZE*SUG/S Multiplicative dummy DF*SUG/S Constant -0.0861 -14.28 *** -1.4561 -8.11 *** Model Specification Number of 2946 2946 observations Number of groups 1473 1473 Obs per group: 2 2 Minimum Average 2 2 Maximum 2 2 Wald chi2 164 99.31 Prob > chi2 0 0