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Innovation, productivity and export Evidence from Italy

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  • Roberto Antonietti
  • Giulio Cainelli

Abstract

Recent developments in the new international trade theory stressed the relationship between firm heterogeneity and internationalization performance. The key prediction of these models is that firms with different levels of productivity - the main source of firm heterogeneity - will generally engage in different modes of internationalization depending on the level of sunk costs incurred in acquiring information on foreign markets, establishing distribution channels, and so on. However, in these theoretical models the sources of productivity are generally unexplained, considering firm heterogeneity as exogenous. A few papers try to open the 'black box' of firm heterogeneity and to show that internationalized firms are generally more innovative, use more knowledge-intensive workers, and are characterized by superior organizational and managerial practices. Using a large sample of over 3000 Italian manufacturing firms for the period 2001-2003, we contribute to this debate employing, and extending the basic Crépon, Duguet and Mairesse (CDM) model. We estimate a five-equation model which identifies the links (correlations) between innovation investment, innovation output, firm productivity and export performance.

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Bibliographic Info

Paper provided by Public policies and local development in its series Openloc Working Papers with number 1017.

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Date of creation: 2010
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Handle: RePEc:trn:utwpol:1017

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Keywords: innovation; R&D; productivity; export; CDM-model;

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References

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  1. Bruno Crépon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation and Productivity : An Econometric Analysis at the Firm Level," Working Papers 98-33, Centre de Recherche en Economie et Statistique.
  2. Hans Loof & Almas Heshmati, 2006. "On the relationship between innovation and performance: A sensitivity analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 317-344.
  3. Lorenzo Casaburi & Valeria Gattai & G. Alfredo Minerva, 2007. "Firms' International Status and Heterogeneity in Performance: Evidence from Italy," Rivista di Politica Economica, SIPI Spa, vol. 97(3), pages 151-188, May-June.
  4. Lööf, Hans & Heshmati, Almas, 2000. "Knowledge Capital and Performance Heterogeneity: A Firm Level Innovation Study," Working Paper Series in Economics and Finance 387, Stockholm School of Economics, revised 14 Aug 2000.
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Cited by:
  1. Antonietti,Roberto & Marzucchi,Alberto, 2013. "Green investment strategies and export performance: A firm-level investigation," INGENIO (CSIC-UPV) Working Paper Series 201302, INGENIO (CSIC-UPV).
  2. Eleonora Di Maria & Roberto Ganau, 2014. "Driving a firmÕs export propensity and export intensity: the role of experience, innovation, and international marketing strategy," "Marco Fanno" Working Papers 0175, Dipartimento di Scienze Economiche "Marco Fanno".

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