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Innovation, quality and exports: The case of Italian SMEs

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  • Cesare Imbriani
  • Piergiuseppe Morone
  • Giuseppina Testa

Abstract

We test the hypothesis that innovating and targeting the upper-quality segment of markets increases Italian small and medium enterprises probability to export, providing empirical evidence that supports it. We observed a positive-quality effect and a strong impact of non-technological innovations over future exports. We also observed that larger and older firms operating in traditional sectors are more likely to export. The most interesting results came from the introduction of interaction terms. We found evidence of a 'super-additive effects', which delineate synergic linkages between product innovation activities and quality strategy.

Suggested Citation

  • Cesare Imbriani & Piergiuseppe Morone & Giuseppina Testa, 2014. "Innovation, quality and exports: The case of Italian SMEs," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(8), pages 1089-1111, December.
    • Handle: RePEc:taf:jitecd:v:23:y:2014:i:8:p:1089-1111
    DOI: 10.1080/09638199.2013.831944
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    References listed on IDEAS

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    1. Schmidt, Tobias & Rammer, Christian, 2007. "Non-technological and Technological Innovation: Strange Bedfellows?," ZEW Discussion Papers 07-052, ZEW - Leibniz Centre for European Economic Research.
    2. Giorgia Giovannetti, Marco Sanfilippo and Margherita Velucchi, 2012. "The impact of China on manufacturing exports of Italy and Germany," RSCAS Working Papers 2012/26, European University Institute.
    3. G. M. Grossman & K. Rogoff (ed.), 1995. "Handbook of International Economics," Handbook of International Economics, Elsevier, edition 1, volume 3, number 3.
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    1. Movahedi, Mohammad & Shahbazi, Kiumars & Gaussens, Olivier, 2017. "Innovation and willingness to export: Is there an effect of conscious self-selection?," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 11, pages 1-22.
    2. Liangfeng Hao & Bin Qiu & Lisette Cervantes, 2016. "Does Firms’ Innovation Promote Export Growth Sustainably?—Evidence from Chinese Manufacturing Firms," Sustainability, MDPI, vol. 8(11), pages 1-20, November.
    3. Naqeeb Ur Rehman, 2017. "Self-selection and learning-by-exporting hypotheses: micro-level evidence," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 133-160, April.
    4. Wu, Lichao & Wei, Yingqi & Wang, Chengang, 2021. "Disentangling the effects of business groups in the innovation-export relationship," Research Policy, Elsevier, vol. 50(1).
    5. Wu, Lichao & Wei, Yingqi & Wang, Chengang & McDonald, Frank & Han, Xia, 2022. "The importance of institutional and financial resources for export performance associated with technological innovation," Technological Forecasting and Social Change, Elsevier, vol. 185(C).

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