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The Joint Impact of Innovation and Knowledge Spillovers on Productivity and Growth for Exporting Firms

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  • Hans Lööf
  • Pardis Nabavi

Abstract

type="main" xml:id="twec12214-abs-0001"> This paper provides new insights regarding the role of innovation and localisation on the levels and growth of total factor productivity among exporting firms. For that purpose, we establish a dynamic model using data collected from nearly 10,000 Swedish exporting firms over a 12-year period. Different innovation proxies are used, and we distinguish between persistent and non-persistent innovators, while knowledge from outside the firm is measured by a newly developed methodology with detailed spatial resolution. The econometric evidence shows two distinct results. First, persistent innovators benefit significantly more than other exporters from access to a rich spectrum of nearby knowledge. Second, the level of productivity among non-innovative exporters and exporters that are only temporary engaged in innovation is positively affected by externalities in the most knowledge-intense local milieus.

Suggested Citation

  • Hans Lööf & Pardis Nabavi, 2015. "The Joint Impact of Innovation and Knowledge Spillovers on Productivity and Growth for Exporting Firms," The World Economy, Wiley Blackwell, vol. 38(4), pages 730-750, April.
  • Handle: RePEc:bla:worlde:v:38:y:2015:i:4:p:730-750
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    File URL: http://hdl.handle.net/10.1111/twec.2015.38.issue-4
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    Cited by:

    1. Wadho, Waqar & Chaudhry, Azam, 2022. "Innovation strategies and productivity growth in developing countries: Firm-level evidence from Pakistani manufacturers," Journal of Asian Economics, Elsevier, vol. 81(C).
    2. Raghavan J. Iyengar & Malavika Sundararajan, 2019. "Is Firm Innovation Associated With Corporate Governance?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(03), pages 1-24, April.
    3. Wadho, Waqar & Chaudhry, Azam, 2020. "Innovation Strategies and Productivity Growth in Developing Countries: Evidence from Pakistan," GLO Discussion Paper Series 466, Global Labor Organization (GLO).
    4. Saša Petković & Jelica Rastoka & Dragana Radicic, 2023. "Impact of Innovation and Exports on Productivity: Are There Complementary Effects?," Sustainability, MDPI, vol. 15(9), pages 1-22, April.

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