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Innovation and exporting: evidence from Spanish manufacturing firms

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  • Aida Caldera

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Abstract

This paper investigates the relationship between innovation and the export behavior of firms using data from a representative panel of Spanish firms over 1991-2002. It presents a simple theoretical model of the firm decision to export and innovate that guides the econometric analysis. Consistent with the predictions of the theoretical model, the econometric results suggest a positive effect of firm innovation on the probability of participation in export markets. The results further reveal the heterogeneous effects of different types of innovations on the firm export participation. In particular, product upgrading appears to have a larger effect on the firm export participation than the introduction of cost-saving innovations. These findings are robust to alternative regression techniques to control for firm unobserved heterogeneity, to dynamic specifications and to the use of instrumental variables regressions to control for the potential endogeneity between innovation and exporting.

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Bibliographic Info

Article provided by Springer in its journal Review of World Economics.

Volume (Year): 146 (2010)
Issue (Month): 4 (December)
Pages: 657-689

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Handle: RePEc:spr:weltar:v:146:y:2010:i:4:p:657-689

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Related research

Keywords: Firm data; Exporting; Innovation; R&D; F14; O31;

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References

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Citations

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Cited by:
  1. Yi, Jingtao & Wang, Chengqi & Kafouros, Mario, 2013. "The effects of innovative capabilities on exporting: Do institutional forces matter?," International Business Review, Elsevier, vol. 22(2), pages 392-406.
  2. Tavassoli, Sam, 2013. "The Role of Product Innovation Output on Export Behavior of Firms," CIRCLE Electronic Working Papers 2013/38, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  3. 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.
  4. Hanley, Aoife & Monreal Pérez, Joaquín, 2012. "Are newly exporting firms more innovative? Findings from matched Spanish innovators," Economics Letters, Elsevier, vol. 116(2), pages 217-220.
  5. Fu, Dahai & Wu, Yanrui & Tang, Yihong, 2010. "Does innovation matter for Chinese hightech exports? a firm-level analysis," MPRA Paper 30012, University Library of Munich, Germany.
  6. Kaz Miyagiwa & Aminata Sissoko, 2013. "The free-rider problem and the optimal duration of research joint ventures: theory and evidence from the Eureka program," Working Papers 1302, Florida International University, Department of Economics.
  7. Richard Harris & John Moffat, 2011. "R&D, innovation and exporting," LSE Research Online Documents on Economics 33593, London School of Economics and Political Science, LSE Library.
  8. 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.
  9. 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.
  10. Alessia LO TURCO & Daniela MAGGIONI, 2013. "Dissecting the impact of innovation on exporting in Turkey," Working Papers 388, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  11. Békés, Gábor & Halpern, László & Muraközy, Balázs, 2013. "Külkereskedelem és a vállalatok közötti különbségek
    [Heterogeneous firms and foreign trade]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 1-24.
  12. Mohammad Movahedi & Olivier Gaussens, 2011. "Innovation, productivité et exportation : Y-a-t-il un effet d'auto-sélection consciente? Une étude empirique sur les PMI de basse-Normandie," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201123, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  13. 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.
  14. Giovanni Dosi & Marco Grazzi & Daniele Moschella, 2014. "Technology and costs in international competitiveness: from countries and sectors to firms," LEM Papers Series 2014/10, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  15. Deng, Ziliang & Guo, Honglin & Zhang, Weifu & Wang, Chengqi, 2014. "Innovation and survival of exporters: A contingency perspective," International Business Review, Elsevier, vol. 23(2), pages 396-406.
  16. Movahedi, Mohammad & Gaussens, Olivier, 2011. "Innovation, productivity, and export: Evidence from SMEs in Lower Normandy, France," MPRA Paper 40443, University Library of Munich, Germany, revised 07 Jun 2012.
  17. Lionel Artige, 2011. "Evidence on the Determinants of Innovation in a Sample of Spanish Firms," CREPP Working Papers 1114, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.

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