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“Firm exports, innovation, … and regions”

  • Enrique López-Bazo


    (Faculty of Economics, University of Barcelona)

  • Elisabet Motellón


    (Faculty of Economics, University of Barcelona)

This paper uses firm-level data for each of the Spanish NUTS2 regions to estimate the effect of product and process innovations on firm’s export performance. It shows that the firm’s propensity to innovate and its export activity vary substantially across regions. Remarkably, results prove that the effect of innovation on exports is far from regionally uniform. The gap in the propensity to export between innovative and non-innovative firms, conditional to other sources of firm heterogeneity, is shown to be particularly wide in regions with high extensive margin of exports. However, differences in the propensity to innovate do not originate regional disparities in the share of sales abroad by exporting firms. Consequently, stimulate firm’s innovation in the less innovative regions can be an effective tool to increase the share of exporting firms.

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Paper provided by University of Barcelona, Regional Quantitative Analysis Group in its series AQR Working Papers with number 201305.

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Length: 50 pages
Date of creation: May 2013
Date of revision: May 2013
Handle: RePEc:aqr:wpaper:201305
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