Product and Process Innovation and the Decision to Export: Firm-level Evidence for Belgium
AbstractUsing 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 firmç’¤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.
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Bibliographic InfoPaper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 24709.
Date of creation: 2009
Date of revision:
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Exports; Product innovation; Process innovation; Self-selection; Firm heterogeneity;
Other versions of this item:
- Ilke VAN BEVEREN & Hylke VANDENBUSSCHE, 2009. "Product and Process Innovation and the decision to Export: Firm-level evidence for Belgium," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2009032, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- VAN BEVEREN, Ilke & VANDENBUSSCHE, Hylke, 2009. "Product and process innovation and the decision to export : firm-level evidence for Belgium," CORE Discussion Papers 2009086, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- 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, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-10 (All new papers)
- NEP-CSE-2009-10-10 (Economics of Strategic Management)
- NEP-ENT-2009-10-10 (Entrepreneurship)
- NEP-INO-2009-10-10 (Innovation)
- NEP-KNM-2009-10-10 (Knowledge Management & Knowledge Economy)
- NEP-SBM-2009-10-10 (Small Business Management)
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