Empirical analysis of innovation and productivity in services firms: The case of South Africa. Issue 1 (2nd January 2023)

• Record Type: Journal Article
• Authors: Kasongo, Atoko; Sithole, Moses; Buchana, Yasser
• Is Part Of: African journal of science, technology, innovation and development. Volume 15:Issue 1(2023)
• Page Start: 1
• Page End: 13
• Publication Date: 2023-01-02
• Subjects: productivity -- innovation -- services -- innovation survey; O12 -- O14 -- O31 -- O33 -- O40; Technological innovations -- Economic aspects -- Developing countries -- Periodicals; Industrial productivity -- Effect of technological innovations on -- Africa -- Periodicals; Economic development -- Africa -- Periodicals; Social planning -- Africa -- Periodicals; Research, Industrial -- Developing countries -- Periodicals; Electronic journals; 338.9270916
• DOI: 10.1080/20421338.2021.2001207
• Languages: English
• ISSNs: 2042-1338

Abstract

Abstract : The purpose of this paper is to investigate the impact of innovation on productivity in the services sector firms in South Africa. Using a three-stage econometric model we find that service sector firms are innovative. We show that firm size, public financial support, patent protection and market sources of information have a positive impact on the decision to innovate. The level of investment in innovation significantly influences the success of both technological and non-technological innovations in service sector firms. The results find that both technological and non-technological innovations have a positive impact on labour productivity, with a greater impact from non-technological innovation.