Learning from trade through innovation: Causal link between imports, exports and innovation in Spanish microdata
AbstractThe paper explores the learning from trade hypothesis. Standardized research approach searchs for learning eÂ¤ects from trade focusing solely on exports, whereby Â…rmÂ’s learning eÂ¤ects are accounted in the form of total factor productivity improvements. In contrast, this papers deÂ…nes a Â…rm learning from trade in terms of introduction of either new products or processes induced by its import and export links with foreign markets. By using microdata for a large sample of Spanish Â…rms, including data on innovation and trade, we Â…nd clear sequencing between imports, exports and innovation. The results suggest that Â…rms learn primarily from import links, which enables them to innovate products and processes and to dress up for starting to export. In a sequence, exporting may enable Â…rms to introduce further innovations. These positive learning eÂ¤ects from trade, however, seem to be limited to small and partially medium Â…rms only. On the other side, Â…rms that are closer to the relevant technological frontier seem to beneÂ…t more from trading activities in terms of innovation than the technological laggard fiÂ…rms.
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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 26410.
Date of creation: 2010
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Â…rm heterogeneity; innovation; exports; imports; 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-2010-07-17 (All new papers)
- NEP-INO-2010-07-17 (Innovation)
- NEP-INT-2010-07-17 (International Trade)
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- M.A. Boermans & H.J. Roelfsema, 2013. "The Effects of Internationalization on Innovation: Firm-Level Evidence for Transition Economies," Working Papers 12-04, Utrecht School of Economics.
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