Santos, EleonoraRibeiro, Neuza2021-12-222021-12-222021-11http://hdl.handle.net/10400.8/6429Technological progress is a key factor for economic growth. However, innovation requires attention from management and decision making at the various stages of the innovation process. Manufacturing, being a major producer of tradables, is a driver of technological change. In this paper we test the impact of innovation and other determinants on manufacturing productivity for 2015-2019, using panel data for 1,333 Portuguese firms. We estimate a model linking Total Factor Productivity growth to innovation, by technological groups and regions. Results suggest that innovation is a driver of productivity, although its magnitude is small. By contrast, Information and Communication Technology appears to exert a negative effect on productivity growth, especially in scaleintensive industries. A possible explanation is that the Portuguese workforce in such industries does not have enough skills to deal with up-to-date ICT. This appears to be corroborated by the positive impact of human capital accumulation on the TFP growth only in the Northern region.engInnovation Management,Information and Communication Technology,Roductivity,Manufacturingconference object10.1109/ICIII53469.2021.00037