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Imported input varieties and product innovation: Evidence from five developing countries

Author

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  • Marijke J.D. Bos
  • Gonzague Vannoorenberghe

Abstract

We examine how access to imported intermediate inputs affects firm‐level product innovation in five developing counties. We combine trade data with survey data on innovation and develop a method to determine whether new inputs were essential for the product innovation. We find evidence that the number of newly imported varieties has a significant impact on product innovations that rely on new inputs and provide suggestive evidence that this effect comes from access to better quality imports. We extend our analysis to assess the consequences of the increase in the number of Chinese exporting firms on product innovation in developing countries.

Suggested Citation

  • Marijke J.D. Bos & Gonzague Vannoorenberghe, 2019. "Imported input varieties and product innovation: Evidence from five developing countries," Review of International Economics, Wiley Blackwell, vol. 27(2), pages 520-548, May.
    • Handle: RePEc:bla:reviec:v:27:y:2019:i:2:p:520-548
    DOI: 10.1111/roie.12387
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    Cited by:

    1. Ndubuisi, Gideon & Mensah, Emmanuel & Owusu, Solomon, 2020. "Export Variety and Imported Intermediate Inputs: Industry-Level Evidence from Africa," MPRA Paper 106008, University Library of Munich, Germany.
    2. Dreger, Christian & Fourné, Marius & Holtemöller, Oliver, 2023. "Globalization, Productivity Growth, and Labor Compensation," IZA Discussion Papers 16010, Institute of Labor Economics (IZA).
    3. Dung Nguyen‐Van & Chia‐Hua Chang, 2021. "Internationalization and product innovation in ASEAN: The moderating role of organizational innovation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 437-462, March.
    4. Anthony Krakah & Gonzague Vannoorenberghe, 2023. "Spatial concentration and firm-level innovation Evidence from Ghana," LIDAM Discussion Papers IRES 2023005, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    5. Zhong, Jianjun, 2023. "The quality of imported intermediate inputs and firms’ innovation activities in China," Economics Letters, Elsevier, vol. 222(C).
    6. Matano, Alessia & Naticchioni, Paolo, 2025. "China's import competition, innovation strategies, and the role of unions," Structural Change and Economic Dynamics, Elsevier, vol. 73(C), pages 423-433.
    7. Kexuan Zhou & Sanjay Kumar & Futao Lu & Qiaoyun Fang & Linhui Yu, 2022. "Has the Belt and Road Initiative Improved the Quality of Food Imported by Chinese Enterprises?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(2), pages 60-83, March.
    8. Matano, Alessia & Naticchioni, Paolo, 2025. "China’s Import Competition, Innovation and the Role of Unions," IZA Discussion Papers 17764, Institute of Labor Economics (IZA).

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    JEL classification:

    • F1 - International Economics - - Trade

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