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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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Citations

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Cited by:
  1. Lo Turco, Alessia & Maggioni, Daniela, 2013. "Does Trade Foster Employment Growth in Emerging Markets? Evidence from Turkey," World Development, Elsevier, vol. 52(C), pages 1-18.
  2. 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.
  3. Alessia Lo Turco & Daniela Maggioni, 2013. "On the Role of Imports in Enhancing Manufacturing Exports," The World Economy, Wiley Blackwell, vol. 36(1), pages 93-120, 01.
  4. 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.
  5. 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.
  6. Nakhoda, Aadil, 2012. "The effect of foreign competition on product switching activities: A firm level analysis," MPRA Paper 39167, University Library of Munich, Germany.
  7. 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.
  8. 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.
  9. Ruane, Frances & Siedschlag, Iulia, 2011. "Boosting Innovation and Productivity in Enterprises: What Works?," Papers EC3, Economic and Social Research Institute (ESRI).

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