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The Role of Product Innovation Output on Export Behavior of Firms

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This paper analyzes the role of innovation on the export behavior of firms. Using two waves of Swedish CIS data merged with register data on firm-specific characteristics. I estimate the influence of the innovation output of a firm on its export propensity and intensity, respectively. I find that the innovation output of firms (measured as sales due to innovative products) has a positive and significant effect on export behavior of firms. The results also show that it is indeed innovation output, rather than innovation input (innovative efforts), that matters for export behavior of firms. Specifically, innovation output leads to increase in later export propensity and intensity of firms. Moreover, there is also strong association of productivity and ownership structure of firms with export propensity and intensity of firms. The results are robust when unobserved time-invariant heterogeneity of firm and also potential endogeneity of innovation-export are taken into accounted.

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  • Tavassoli, Sam, 2013. "The Role of Product Innovation Output on Export Behavior of Firms," Working Papers 2013/05, Blekinge Institute of Technology, Department of Industrial Economics.
  • Handle: RePEc:hhs:bthcsi:2013-005
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    Keywords

    Innovation output; innovation input; export propensity; export intensity;

    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
    • 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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