The innovation and productivity nexus in Malaysian manufacturing firms

• Main Authors: Shafi'i, Mazlina, Ismail, Normaz Wana
• Format: Article
• Language: English
• Published: Inderscience Publishers 2015
• Online Access: http://psasir.upm.edu.my/id/eprint/46638/1/The%20innovation%20and%20productivity%20nexus%20in%20Malaysian%20manufacturing%20firms.pdf; http://psasir.upm.edu.my/id/eprint/46638/; http://www.inderscience.com/ijebr

The study uses the Economic Census Data of 2011 to investigate the innovation-productivity nexus at firm level of Malaysia manufacturing firms. The nexus of innovation and the other determinants of productivity were examined through the augmented Cobb-Douglas production function and the outcomes were as expected. The major findings of the study confirmed that innovation plays a significant role in enhancing productivity in the manufacturing sector. Other than innovation, capital intensity, labour quality, foreign direct investment, and export are among the factors that contribute to higher productivity.