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

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  • Tavassoli, Sam

    (CSIR, Blekinge Inst of Technology)

  • Jienwatcharamongkhol, Viroj

    (Department of Economics, Lund University, Sweden)

Abstract

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.

Suggested Citation

  • Tavassoli, Sam & Jienwatcharamongkhol, Viroj, 2014. "Closing the Gap: An Empirical Evidence on Firm’s Innovation, Productivity, and Exports," Working Papers 2014/06, Blekinge Institute of Technology, Department of Industrial Economics.
  • Handle: RePEc:hhs:bthcsi:2014-006
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    More about this item

    Keywords

    innovation; productivity; export; firm-level; structural model; community innovation survey;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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