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Are Exporters More Likely to Introduce Product Innovations?

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  • Massimiliano Bratti
  • Giulia Felice

Abstract

A firm\'s export status may improve its capacity of introducing product innovations. We explore this idea using very rich firm-level data on Italian A firm\'s export status may improve its capacity of introducing product innovations. We explore this idea using very rich firm-level data on Italian Manufacturing, and sector-province specific measures of firms\' distance from export markets and of their export market potential as instruments for differences in export activities. We find that exporting significantly increases the likelihood of introducing product innovations and that this effect is not fully captured by the channels commonly stressed by the theoretical literature, such as larger market (and accordingly firm) size or higher investments in R&D. We argue that heterogeneity in foreign customers\' tastes and needs may explain our findings.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal The World Economy.

Volume (Year): 35 (2012)
Issue (Month): 11 (November)
Pages: 1559-1598

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Handle: RePEc:bla:worlde:v:35:y:2012:i:11:p:1559-1598

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Cited by:
  1. Peters, Bettina & Riley, Rebecca & Siedschlag, Iulia & Vahter, Priit & McQuinn, John, 2014. "Innovation and Productivity in Services:Evidence from Germany, Ireland and the United Kingdom," Papers WP480, Economic and Social Research Institute (ESRI).
  2. Alessia LO TURCO & Daniela MAGGIONI, 2012. "Does trade foster employment growth in emerging markets? Evidence from Turkey," Working Papers 383, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  3. Carlo Altomonte & Tommaso Aquilante & Gábor Békés & Gianmarco I. P. Ottaviano, 2014. "Internationalization and Innovation of Firms: Evidence and Policy," CEP Special Papers 032, Centre for Economic Performance, LSE.
  4. Nakhoda, Aadil, 2012. "The effect of foreign competition on product switching activities: A firm level analysis," MPRA Paper 39167, University Library of Munich, Germany.
  5. David Aristei & Davide Castellani & Chiara Franco, 2013. "Firms’ exporting and importing activities: is there a two-way relationship?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 149(1), pages 55-84, March.
  6. Ruane, Frances & Siedschlag, Iulia, 2011. "Boosting Innovation and Productivity in Enterprises: What Works?," Papers EC3, Economic and Social Research Institute (ESRI).
  7. Giuliano CONTI & Alessia LO TURCO & Daniela MAGGIONI, 2012. "Rethinking the import-productivity nexus for Italian manufacturing," Working Papers 381, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  8. Enrique López-Bazo & Elisabet Motellón, 2013. "“Firm exports, innovation, … and regions”," IREA Working Papers 201308, University of Barcelona, Research Institute of Applied Economics, revised May 2013.
  9. Alessia LO TURCO & Daniela MAGGIONI, 2014. "On firms' product space evolution: the role of firm and local product relatedness," Working Papers 402, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  10. Alessia LO TURCO & Daniela MAGGIONI, 2011. "On the Role of Imports in Enhancing Manufacturing Exports," Working Papers 363, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  11. Alessia LO TURCO & Daniela MAGGIONI, 2012. "Imports, exports and the firm product scope: evidence from Turkey," Working Papers 384, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  12. Massimiliano Bratti & Giulia Felice, 2012. "Buyer-Supplier Relationships, Internationalization and Product Innovation," Development Working Papers 327, Centro Studi Luca d\'Agliano, University of Milano, revised 13 Nov 2012.

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