Contribution of science, technology, and innovation to enhancing total factor productivity in Ha Tinh province by industry and enterprise size

Abstract

This study determines the extent of the contribution of science, technology, and innovation to enhancing total factor productivity (TFP) in Ha Tinh province, with analysis disaggregated by industry and enterprise size by using the annual enterprise survey dataset from the Provincial Statistics Office for the period 2011-2022. The findings indicate that the TFP contribution to enterprises’ value added has clearly improved across all three size categories (micro, small, and medium-large). However, the efficiency contribution of technological change and innovation by size shows a decline and a clear disparity among enterprise types, particularly within the micro and small sectors. Regarding the TFP contribution to value added by industry (including agriculture, forestry, and fisheries; manufacturing and processing; construction; wholesale and retail trade, etc.), Ha Tinh province exhibits fluctuations but records an upward trend in several sectors. Based on these findings, the study proposes that Ha Tinh province needs to refine the development orientation of ST&I for local enterprises and foster the development of the supply-demand market for science, technology, and innovation in the coming period.