The Impact of R&D and ICT Investment on Innovation and Productivity in Chilean Firms

Developing countries face the enormous challenge of closing the productivity gap with rich countries. According to previous studies, this is especially relevant for firms in the services sector, which, albeit its growing importance in the economy, still has a large productivity gap with other sectors. Given that ICT investment can help close this gap by increasing innovation and productivity, we study this issue using a sample of Chilean firms covering a wide range of industries, particularly in the services sector.