Innovation and R&D Policy: the Case of Transforming Sector and Business Services Sector.

This paper analyzes some defactors that improve product innovation for the case of transformation sector and business services sector. Among this factors are human capital, technology, market competition, business expectations, and export intensity of entrepreneurs of these sectors. In addition, it is considered efficiency of instruments of R&D policy. To achieve these goals it is calculated two PLS estimation for 25 countries in 2007 for each sector. The estimations show that there arent significant differences between two sector except in the case of human capital. These factors have more effects on product innovation in the case transforming sector. [ABSTRACT FROM AUTHOR]