University of Tehran Civil Engineering Infrastructures Journal 2322-2093 Articles in Press 2025 07 15 Innovation and Productivity in Public Utilities: A Pandemic-Era Perspective 102745 10.22059/ceij.2025.386860.2202 EN Mojtaba Valibeigi Assistant Professor, Department of Industrial, Mechanical and Aerospace Engineering, Buein Zahra Technical University, Buein Zahra, Qazvin, Iran. 0000-0002-7902-4923 Reza Shahrjerdi Assistant Professor, Department of Industrial, Mechanical and Aerospace Engineering, Buein Zahra Technical University, Buein Zahra, Qazvin, Iran. Journal Article 2024 12 11 This study investigates the complex interplay between innovation and traditional factors (labor and capital) in shaping the total factor productivity (TFP) of water and wastewater utilities during the COVID-19 pandemic. By analyzing data from 22 water utilities across Iran from 2019 to 2023, we shed light on the significant impact of these factors on productivity. Our findings reveal a nuanced picture. While traditional factors remained crucial, their marginal productivity declined due to pandemic-induced challenges such as supply chain disruptions and workforce limitations. However, business model innovation emerged as a critical driver of TFP. The adoption of digital technologies, remote work strategies, and customer-centric approaches enabled utilities to adapt to changing circumstances, enhance operational efficiency, and improve customer satisfaction. To sustain and enhance future productivity, water utilities should prioritize investments in innovation, digital transformation, and workforce development. Policymakers can play a crucial role by creating a conducive regulatory environment, providing incentives for innovation, and supporting infrastructure development. By understanding the interplay between traditional factors and innovation, policymakers and industry leaders can make informed decisions to optimize resource allocation, improve efficiency, and ensure the long-term sustainability of the water utility sector. https://ceij.ut.ac.ir/article_102745_0b7b3fba187157a8465132dbf623e75a.pdf