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Closing the Gap: An Empirical Evidence on Firm’s Innovation, Productivity, and Exports

Listed author(s):
  • Tavassoli, Sam

    ()

    (CSIR, Blekinge Inst of Technology)

  • Jienwatcharamongkhol, Viroj

    ()

    (Department of Economics, Lund University, Sweden)

It is well known that exporters are productive firms. But the source of their productivity is left unexplained. This paper aims to endogenize the productivity heterogeneity of exporting firms by incorporating innovation in a structural model framework. In doing so, we close the gap between the innovation-productivity and productivity-export literature. Two waves of Swedish Community Innovation Survey (CIS) are merged. This allows for a setup that takes into account the links from innovation input to innovation output and also from innovation output to productivity and exports. The main findings highlight that exporters are productive firms with innovation output in the past, which in turn was driven by prior R&D and other innovation activity investments.

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File URL: http://www.bth.se/mam/forskning.nsf/attachments/WP%202014_6_Viroj&SamClosing%20the%20Gap_pdf/$file/WP%202014_6_Viroj&SamClosing%20the%20Gap.pdf
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Paper provided by Center for Innovation and Technology Research, Blekinge Institute of Technology in its series CITR Working Paper Series with number 2014/06.

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Length: 28 pages
Date of creation: 01 Jun 2014
Handle: RePEc:hhs:bthcsi:2014-006
Contact details of provider: Postal:
CITR (Center for Innovation and Technology Research), Department of Industrial Economics, Blekinge Inst of Technology, 371 79 Karlskrona, Sweden

Phone: 0455 - 38 50 00
Fax: 0455 - 38 50 57
Web page: http://www.bth.se/csir

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  1. Mohnen, Pierre & Mairesse, Jacques, 2010. "Using Innovation Surveys for Econometric Analysis," MERIT Working Papers 023, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  2. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  3. Andrew B. Bernard & J. Bradford Jensen, 1997. "Exceptional Exporter Performance: Cause, Effect, or Both?," NBER Working Papers 6272, National Bureau of Economic Research, Inc.
  4. Peter Howitt, 2000. "Endogenous Growth and Cross-Country Income Differences," American Economic Review, American Economic Association, vol. 90(4), pages 829-846, September.
  5. Paul S. Segerstrom & Ignat Stepanok, 2012. "Learning How to Export," Kiel Working Papers 1801, Kiel Institute for the World Economy.
  6. Long, Ngo Van & Raff, Horst & Stähler, Frank, 2008. "Innovation and Trade with Heterogeneous Firms," Kiel Working Papers 1430, Kiel Institute for the World Economy (IfW).
  7. Pierre Mohnen & Jacques Mairesse & Marcel Dagenais, 2006. "Innovativity: A Comparison Across Seven European Countries," CIRANO Working Papers 2006s-11, CIRANO.
  8. Delgado, Miguel A. & Farinas, Jose C. & Ruano, Sonia, 2002. "Firm productivity and export markets: a non-parametric approach," Journal of International Economics, Elsevier, vol. 57(2), pages 397-422, August.
  9. Brouwer, Erik & Kleinknecht, Alfred, 1997. "Measuring the unmeasurable: a country's non-R&D expenditure on product and service innovation," Research Policy, Elsevier, vol. 25(8), pages 1235-1242, January.
  10. Tor Jakob Klette & Samuel Kortum, 2002. "Innovating Firms and Aggregate Innovation," NBER Working Papers 8819, National Bureau of Economic Research, Inc.
  11. Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
  12. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-161, January.
  13. Martin Andersson & Hans Lˆˆf, 2009. "Learning-by-Exporting Revisited: The Role of Intensity and Persistence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(4), pages 893-916, December.
  14. G. Steven Olley & Ariel Pakes, 1992. "The Dynamics of Productivity in the Telecommunications Equipment Industry," NBER Working Papers 3977, National Bureau of Economic Research, Inc.
  15. repec:bol:prinwp:007 is not listed on IDEAS
  16. Andrew Bernard & Joachim Wagner, 1997. "Exports and success in German manufacturing," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(1), pages 134-157, March.
  17. Ariel Pakes & Zvi Griliches, 1984. "Patents and R&D at the Firm Level: A First Look," NBER Chapters, in: R&D, Patents, and Productivity, pages 55-72 National Bureau of Economic Research, Inc.
  18. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-564, September.
  19. Bronwyn Hall & Jacques Mairesse, 2006. "Empirical studies of innovation in the knowledge-driven economy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 289-299.
  20. Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
  21. Alfred Kleinknecht & Kees Van Montfort & Erik Brouwer, 2002. "The Non-Trivial Choice between Innovation Indicators," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(2), pages 109-121.
  22. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
  23. Lööf, Hans & Heshmati, Almas, 2001. "On the Relationship between Innovation and Performance: A sensitivity Analysis," SSE/EFI Working Paper Series in Economics and Finance 0446, Stockholm School of Economics, revised 01 Oct 2001.
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