IDEAS home Printed from
   My bibliography  Save this paper

Innovation and Export Volumes and Prices: A Disaggregated Study


  • Greenhalgh, Christine Anne
  • Taylor, Paul


The paper explores the role of innovation in the determination of both net exports and export prices. The analysis is conducted for 36 industry groups covering both manufacturers and services in the UK. The data are annual time series and these are analysed using the techniques of cointegration to establish the existence of significant time-series relationships between innovation and trade performance. Alternative econometric estimates of these relationships were obtained for 24 manufacturing industries using patents as the indicator of scientific advance and rising product quality in place of innovations. Patents provide a measure of relative technological performance of the United Kingdom, but for a smaller range of economic activities. The empirical findings support the view that successful R&D (which can raise product quality or reduce production costs) and good industrial relations (which improve a reliability of supply) have quantitatively significant impacts on the balance of trade in a variety of industries and services. Our findings also raise concern over issues of measurement quality for the monitoring of both input to and outputs from the R&D production process, which is critical for designing policy to improve performance.

Suggested Citation

  • Greenhalgh, Christine Anne & Taylor, Paul, 1990. "Innovation and Export Volumes and Prices: A Disaggregated Study," CEPR Discussion Papers 487, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:487

    Download full text from publisher

    File URL:
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    More about this item


    Industrial Innovation; Trade Performance;


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:487. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.