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Innovation and Exporting: Edvidence from Spanish Manufacturing Firms

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  • Aïda Caldera Sanchez

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

Paper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers ECARES with number 2009_014.

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Length: 40 p.
Date of creation: 2009
Date of revision:
Publication status: Published by:
Handle: RePEc:eca:wpaper:2009_014

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Keywords: Firm data; innovation; trade.;

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References

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Citations

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Cited by:
  1. 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.
  2. Dahai Fu & Yanrui Wu & Yihong Tang, 2011. "Does Innovation Matter for Chinese High-Tech Exports? A Firm-Level Analysis," Economics Discussion / Working Papers 11-21, The University of Western Australia, Department of Economics.
  3. 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.
  4. Richard Harris & John Moffat, 2011. "R&D, Innovation and Exporting," SERC Discussion Papers 0073, Spatial Economics Research Centre, LSE.
  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. 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.
  7. 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.
  8. Alessia LO TURCO & Daniela MAGGIONI, 2011. "On the Role of Imports in Enhancing Manufacturing Exports," Working Papers 363, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  9. Aoife Hanley & Joaquín Monreal-Pérez, 2011. "Are Newly Exporting Firms more Innovative? Findings from Matched Spanish Innovators," Kiel Working Papers 1735, Kiel Institute for the World Economy.
  10. 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.
  11. 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.
  12. 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.
  13. repec:aqr:wpaper:201305 is not listed on IDEAS
  14. 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.
  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.

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