The Technological Impact of Innovation in the Naval Industry:The Case of Cotecmar, in Cartagena, Colombia

Abstract

Innovation generates significant positive externalities in its productive environment, known as spillovers. We study the case of the shipyard Cotecmar, in Cartagena, Colombia, and measure the effect of investment in this type of activity at the level of the firm on profits using panel data with instrumental variables. Our estimates indicate that investment in science, technology and innovation raises the profitability of the firm that undertakes it. We also find evidence of intrasectorial spillovers that positively affect the profitability of the rest of the firms in the sector, particularly in the context of the colombian Caribbean Region.