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Innovation and Export Performance: Firm-Level Evidence from Developing, Emerging, and Advanced Economies

Author

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  • Aekkapat Laksanacom

    (Kasetsart University, Thailand)

  • Rapeepat Manasoontorn

    (Rajamangala University of Technology Rattanakosin, Thailand)

Abstract

This paper investigates the relationship between firm-level innovation and export performance across different stages of economic development. Data from 10,000 firms in the 2023 World Bank Enterprise Survey are used to analyze the effects of product innovation, process innovation, and research and development (R&D) activities on export intensity. A fractional probit model is employed to account for the bounded nature of export shares. Results show that capital intensity and R&D are positively associated with export propensity, while product innovation exhibits a negative short-run effect, particularly among smaller firms. No significant effect is found for process innovation. Export behavior varies across income groups, with firms in high-income countries displaying higher export intensity than those in low- and middle-income economies. These findings highlight the conditional role of innovation in promoting export activity and suggest the importance of targeted policies to enhance innovation capacity and export readiness in developing economies.

Suggested Citation

  • Aekkapat Laksanacom & Rapeepat Manasoontorn, 2025. "Innovation and Export Performance: Firm-Level Evidence from Developing, Emerging, and Advanced Economies," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 50(4), pages 131-150, December.
    • Handle: RePEc:ris:jecdev:022002
    DOI: 10.35866/caujed.2024.50.4.006
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    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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