Template-Type: ReDIF-Paper 1.0 Author-Name: Julio Raffo Author-X-Name-First: Julio Author-X-Name-Last: Raffo Author-Email: raffo@univ-paris13.fr Author-Workplace-Name: CEPN, Université Paris Nord Author-Name: Stéphane Lhuillery Author-X-Name-First: Stéphane Author-X-Name-Last: Lhuillery Author-Email: stephane.lhuillery@epfl.ch Author-Workplace-Name: Chaire en Economie et Management de l'Innovation, Ecole Polytechnique Fédérale de Lausanne Author-Name: Luis Miotti Author-X-Name-First: Luis Author-X-Name-Last: Miotti Author-Email: miotti@univ-paris13.fr Author-Workplace-Name: CEPN, Université Paris Nord Title: Northern and Southern Innovativity: A comparison across European and Latin-American countries Abstract: This paper compares the role of innovation and economic performance across European and Latin American countries, using firm level data from France, Spain, Switzerland, Argentina, Brazil and Mexico. We implement a standard structural model linking R&D intensity, innovation and productivity. We find evidences revealing structural differences between regions, but also presence of heterogeneity within regions. In particular, firms tend to face innovation activities to achieve a better economic performance in similar terms along regions, but their interaction with national systems and environments is weaker in developing countries. A heterogeneous effect of foreign subsidiaries is found regarding innovativity whereas it induces better productivity in every country. Creation-Date: 2007-09 Number: cemi-workingpaper-2008-004 Classification-JEL: O12, O57, O3 Keywords: R&D, Innovation, Productivity, Developing countries, MNEs Handle: RePEc:cmi:wpaper:cemi-workingpaper-2008-004