From innovation to exporting or vice versa? Causal link between innovation activity and exporting in Slovenian microdata
Abstract
Firm productivity and export decision are closely related to its innovation ac- tivity. Product innovation may play a more important role in the decision to start exporting, while the decision for process innovation may be triggered by success- ful exporting. This suggests that the causality between innovation and exporting may run from product innovation to exporting and conesequently from exporting to process innovation and reverse productivity improvements. Using detailed mi- crodata, including innovation survey, industrial production survey and information on trade, for Slovenian firms in 1996-2002 we investigate this dual causal relation- ship between firms' innovation and exporting activity. We find no evidence for the hypothesis that either product or process innovations increase the probability of becoming a first time exporter, but find consistent support both in the innovation survey as well as in the industrial production survey that exporting does lead to pro- ductivity improvements. These, however, are likely to be related to process rather than product innovations and are limited to a sample of medium and large sized first time exporters only.Download Info
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Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 20408.Length:
Date of creation: 2008
Date of revision:
Handle: RePEc:lic:licosd:20408
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Related research
Keywords: Firm heterogeneity; innovation; exporting; productivity; matching;Find related papers by 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
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-04-21 (All new papers)
- NEP-EFF-2008-04-21 (Efficiency & Productivity)
- NEP-ENT-2008-04-21 (Entrepreneurship)
- NEP-INO-2008-04-21 (Innovation)
- NEP-INT-2008-04-21 (International Trade)
- NEP-MIC-2008-04-21 (Microeconomics)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- De Beule, Filip & Van Beveren, Ilke, 2010.
"Does firm agglomeration drive product innovation and renewal?,"
Open Access publications from Katholieke Universiteit Leuven
urn:hdl:123456789/386075, Katholieke Universiteit Leuven.
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"Product and process innovation and the decision to export: firm-level evidence for Belgium,"
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urn:hdl:123456789/385823, Katholieke Universiteit Leuven.
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