Product and Process Innovation and the Decision to Export: Firm-level Evidence for Belgium

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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
Hylke Vandenbussche

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Hylke Vandenbussche

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.

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Paper provided by LICOS - Centre for Institutions and Economic Performance, K.U.Leuven in its series LICOS Discussion Papers with number 24709.

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Date of creation: 2009
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Handle: RePEc:lic:licosd:24709

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Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - 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)

References listed on IDEAS
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Chiara Criscuolo & Jonathan E. Haskel & Matthew J. Slaughter, 2005. "Global Engagement and the Innovation Activities of Firms," NBER Working Papers 11479, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Mirabelle Muûls & Mauro Pisu, . "Imports and exports at the level of the firm: Evidence from Belgium," Discussion Papers 07/28, University of Nottingham, GEP. [Downloadable!]
Other versions:
- Mirabelle Muûls & Mauro Pisu, 2007. "Imports and Exports at the Level of the Firm : Evidence from Belgium," Research series 200705-03, National Bank of Belgium. [Downloadable!]
- Mirabelle Muûls & Mauro Pisu, 2007. "Imports and Exports at the Level of the Firm: Evidence from Belgium," CEP Discussion Papers dp0801, Centre for Economic Performance, LSE. [Downloadable!]
- Mirabelle Muûls & Mauro Pisu, 2009. "Imports and Exports at the Level of the Firm: Evidence from Belgium," The World Economy, Blackwell Publishing, vol. 32(5), pages 692-734, 05. [Downloadable!] (restricted)

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This page was last updated on 2009-11-5.

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