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On the Relationship between Innovation and Export: The Case of Australian SMEs

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  • Alfons Palangkaraya

    ()
    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; Intellectual Property Research Institute of Australia, The University of Melbourne)

Abstract

This paper investigates the link between innovation and export market participation using Australian small and medium enterprises (SMEs) data. The results show that export and innovation are positively linked. Depending on the industry and the type of innovation (process or product), innovation may lead to export and, to a lesser extent, export may lead to innovation. Firms in the primary sector (agriculture and mining) show the strongest evidence that innovation leads to export. From firms in the services sector, there is indication that only process innovation leads to export. Also, only in this sector, there is evidence that export may lead to (process) innovation.

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Bibliographic Info

Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2013n04.

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Length: 30 pages
Date of creation: Feb 2013
Date of revision:
Handle: RePEc:iae:iaewps:wp2013n04

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Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
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Keywords: Innovation; export; small and medium enterprises; propensity score matching;

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References

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  2. Bee Yan Aw & Xiaomin Chen & Mark J. Roberts, 1997. "Firm-level Evidence on Productivity Differentials, Turnover, and Exports in Taiwanese Manufacturing," NBER Working Papers 6235, National Bureau of Economic Research, Inc.
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  7. Alfons Palangkaraya & Jongsay Yong, 2007. "Exporter and Non-Exporter Productivity Differentials: Evidence from Australian Manufacturing Establishments," Melbourne Institute Working Paper Series wp2007n04, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  8. Arundel, Anthony & Kabla, Isabelle, 1998. "What percentage of innovations are patented? empirical estimates for European firms," Research Policy, Elsevier, vol. 27(2), pages 127-141, June.
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  22. Leonardo Iacovone & BeataS. Javorcik, 2010. "Multi-Product Exporters: Product Churning, Uncertainty and Export Discoveries," Economic Journal, Royal Economic Society, vol. 120(544), pages 481-499, 05.
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