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Product and Process Innovation and the decision to Export: Firm-level evidence for Belgium

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  • Ilke VAN BEVEREN

    (Lessius University College, Department of Business Studies, Antwerp and Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES))

  • Hylke VANDENBUSSCHE

    (Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), Katholieke Universiteit Leuven, LICOS Centre for Institutions and Economic Performance and § CEPR.)

Abstract

Using data from the Community Innovation Survey for Belgium in two consecutive periods, this paper explores the relationship between firm-level innovation activities and the propensity to start exporting. To measure innovation, we include indicators of both innovative effort (R&D activities) as well as innovative output (product and process innovation). Our results suggest that the combination of product and process innovation, rather than either of the two in isolation, increases a firm’s probability to enter the export market. After controlling for potential endogeneity of the innovation activities, only firms with a sufficiently high probability to start exporting engage in product and process innovation prior to their entry on the export market, pointing to the importance of self-selection into innovation.

Suggested Citation

  • Ilke VAN BEVEREN & Hylke VANDENBUSSCHE, 2009. "Product and Process Innovation and the decision to Export: Firm-level evidence for Belgium," LIDAM Discussion Papers IRES 2009032, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:2009032
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    References listed on IDEAS

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    Cited by:

    1. Edeh, Jude Ndubuisi & Obodoechi, Divine Ndubuisi & Ramos-Hidalgo, Encarnación, 2020. "Effects of innovation strategies on export performance: New empirical evidence from developing market firms," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    2. Lopez, Carmen & Yacine Haddoud, Mohamed & Kasturiratne, Dulekha, 2022. "Revisiting the innovation–export entry link through a configuration approach," Journal of Business Research, Elsevier, vol. 149(C), pages 927-937.
    3. Keiko ITO, 2012. "Sources of Learning-by-Exporting Effects: Does Exporting Promote Innovation?," Working Papers DP-2012-06, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Dahai Fu & Yanrui Wu & Yihong Tang, 2012. "Does Innovation Matter for Chinese High-Tech Exports? A Firm-Level Analysis," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 7(2), pages 218-245, June.
    5. Kawtar Dkhissi, 2014. "Impact des accords de libre échange sur la propension et l'intensité des exportations des entreprises au Maroc," Post-Print hal-01335587, HAL.

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    More about this item

    Keywords

    Exports; Product innovation; Process innovation; Self-selection; Firm heterogeneity;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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