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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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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. Alessia LO TURCO & Daniela MAGGIONI, 2012. "Imports, exports and the firm product scope: evidence from Turkey," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 384, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  2. David Aristei & Davide Castellani & Chiara Franco, 2011. "Firms' exporting and importing activities: is there a two-way relationship?," Quaderni del Dipartimento di Economia, Finanza e Statistica, Università di Perugia, Dipartimento Economia, Finanza e Statistica 99/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  3. Carlo Altomonte & Tommaso Aquilante & Gábor Békés & Gianmarco I. P. Ottaviano, 2014. "Internationalization and Innovation of Firms: Evidence and Policy," CEP Special Papers, Centre for Economic Performance, LSE 032, Centre for Economic Performance, LSE.
  4. Alessia LO TURCO & Daniela MAGGIONI, 2012. "Does trade foster employment growth in emerging markets? Evidence from Turkey," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 383, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  5. Alessia LO TURCO & Daniela MAGGIONI, 2014. "On firms' product space evolution: the role of firm and local product relatedness," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 402, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  6. 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, Economic and Social Research Institute (ESRI) WP480, Economic and Social Research Institute (ESRI).
  7. Valeria Gattai & Valentina Trovato, 2014. "Estimating sourcing premia with Italian regional data," Working Papers, University of Milano-Bicocca, Department of Economics 276, University of Milano-Bicocca, Department of Economics, revised Jun 2014.
  8. Nakhoda, Aadil, 2012. "The effect of foreign competition on product switching activities: A firm level analysis," MPRA Paper 39167, University Library of Munich, Germany.
  9. Ruane, Frances & Siedschlag, Iulia, 2011. "Boosting Innovation and Productivity in Enterprises: What Works?," Papers, Economic and Social Research Institute (ESRI) EC3, Economic and Social Research Institute (ESRI).
  10. Alessia LO TURCO & Daniela MAGGIONI, 2011. "On the Role of Imports in Enhancing Manufacturing Exports," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 363, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  11. Giuliano CONTI & Alessia LO TURCO & Daniela MAGGIONI, 2012. "Rethinking the import-productivity nexus for Italian manufacturing," Working Papers, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali 381, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  12. Enrique López-Bazo & Elisabet Motellón, 2013. "“Firm exports, innovation, … and regions”," IREA Working Papers, University of Barcelona, Research Institute of Applied Economics 201308, University of Barcelona, Research Institute of Applied Economics, revised May 2013.
  13. Massimiliano Bratti & Giulia Felice, 2012. "Buyer-Supplier Relationships, Internationalization and Product Innovation," Development Working Papers, Centro Studi Luca d\'Agliano, University of Milano 327, Centro Studi Luca d\'Agliano, University of Milano, revised 13 Nov 2012.

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