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Entry into Export Markets as an Incentive to Innovate. Evidence from the Russian Manufacturing Industry Survey

Author

Listed:
  • Victoria Golikova

    (Institute for Industrial and Market Studies of the National University-Higher School of Economics)

  • Ksenia Gonchar

    (Institute for Industrial and Market Studies of the National University-Higher School of Economics)

  • Boris Kuznetsov

    (Institute for Industrial and Market Studies of the National University-Higher School of Economics)

Abstract

This paper examines how export and export destination stimulates innovation by Russian manufacturing firms. The discussion is guided by the theoretical models for heterogeneous firms engaged in international trade which predict that, because more productive firms generate higher profit gains, they are able to afford high entry costs, and trade liberalization encourages the use of more progressive technologies and brings higher returns from R&D investments. We will test the theory using a panel of Russian manufacturing firms surveyed in 2004 and 2009, and use export entry and export destinations to identify the causal effects on various direct measures of technologies, skill and management innovations. We find evidence on exporters’ higher R&D financing, better management and technological upgrades. Exporters, most noticeably long-time and continuous exporters, are more active in monitoring their competitors, both domestically and internationally, and more frequently employ highly qualified managers. Exporters are more active in IT implementation. When it comes to export destination, we find that non-CIS exporters are more prone to learning. However, we cannot identify that government or foreign ownership shows any impact on learning-by-exporting effects.

Suggested Citation

  • Victoria Golikova & Ksenia Gonchar & Boris Kuznetsov, 2011. "Entry into Export Markets as an Incentive to Innovate. Evidence from the Russian Manufacturing Industry Survey," HSE Working papers WP BRP 11/EC/2011, National Research University Higher School of Economics.
  • Handle: RePEc:hig:wpaper:11/ec/2011
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    References listed on IDEAS

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    More about this item

    Keywords

    innovation; export; export destination; learning effects.;
    All these keywords.

    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
    • P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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