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Product and Process Innovation and Firms’ decision to Export

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  • Vanbeveren, Ilke
  • Vandenbussche, Hylke

Abstract

We analyze the relationship between firm-level innovation activities and firms’ propensity to start exporting for firms in a small open economy. We measure innovation by innovative effort (R&D) as well as by innovative output (product and process innovation). After carefully correcting for endogeneity and selection issues, the evidence points to firms self-selecting into innovation in anticipation of their entry into export markets, rather than product and process innovation triggering entry into the export market. These results suggest that governments can foster firm-level innovation through trade liberalization.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7846.

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Date of creation: Jun 2010
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Handle: RePEc:cpr:ceprdp:7846

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Related research

Keywords: Exports; Process innovation; Product innovation; R&D; Self-selection;

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Cited by:
  1. Alfons PALANGKARAYA, 2012. "The Link between Innovation and Export: Evidence from Australiafs Small and Medium Enterprises," Working Papers DP-2012-08, Economic Research Institute for ASEAN and East Asia (ERIA).
  2. 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.
  3. Czarnitzki, Dirk & Wastyn, Annelies, 2010. "Competing internationally: On the importance of R&D for export activity," ZEW Discussion Papers 10-071, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. 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.
  5. 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.
  6. 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.
  7. Gazaniol, Alexandre, 2011. "The Innovativity of Global Firms : Evidence from French Manufacturers," Economics Papers from University Paris Dauphine 123456789/6060, Paris Dauphine University.
  8. Massimiliano Bratti & Giulia Felice, 2012. "Are Exporters More Likely to Introduce Product Innovations?," The World Economy, Wiley Blackwell, vol. 35(11), pages 1559-1598, November.

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