Template-type: ReDIF-Paper 1.0 Author-Name: Goedhuys, Micheline Author-Email: goedhuys@merit.unu.edu Author-Workplace-Name: UNU-MERIT and University of Antwerpen Author-Name: Janz, Norbert Author-Email: janz@merit.unu.edu Author-Workplace-Name: UNU-MERIT and Aachen University of Applied Sciences Author-Name: Mohnen, Pierre Author-Email: p.mohnen@merit.unimaas.nl Author-Workplace-Name: UNU-MERIT and University of Maastricht Title: Knowledge-based productivity in low-tech industries: evidence from firms in developing countries. Abstract: Using firm level data from five countries - Brazil, Ecuador, South Africa, Tanzania and Bangladesh - this paper examines the knowledge-based determinants of productivity of firms active in food processing, textiles, and garments and leather products. In particular, it seeks to investigate the importance of various sources of knowledge in explaining productivity in the different industries. The knowledge sources driving productivity performance are very different across sectors. In food processing, firm productivity is most strongly affected by quality of management and foreign ownership linkages. In textiles, firms raise productivity levels by importing new machinery and through research and development. In garments and leather products, R&D and design activities, high quality management and licensing technology from foreign firms are significant productivity determinants. Firms' productivity levels are further depressed by regulatory and financial constraints. Classification-JEL: D24, L66, L67, O14, O31 Keywords: Productivity, Knowledge, R&D, Developing Countries, Food Processing, Textiles, Garments, Leather Series: UNU-MERIT Working Papers Creation-Date: 2008 Number: 2008-007 File-URL: https://unu-merit.nl/publications/wppdf/2008/wp2008-007.pdf File-Format: application/pdf File-Size: 275 Kb Handle: RePEc:unm:unumer:2008007