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Are Newly Exporting Firms more Innovative? Findings from Matched Spanish Innovators

Author

Listed:
  • Aoife Hanley
  • Joaquín Monreal-Pérez

Abstract

The prevalence of Internet-based sales by exporters vs. non-exporters is highlighted in a recent World Bank Report (Ferro, 2011) suggesting the use of sophisticated processes when selling overseas. We investigate the count of new process/ product innovations for a group of newly exporting Spanish firms vs. a non-exporter control group. We use propensity score kernel matching and difference-in-differences to help deal with endogenous exporting, sunk exporting costs and common macroeconomic shocks. Our results confirm that selection into exporting is largely driven by productivity and industry technological differences, consistent with exporting sunk costs. We find some evidence of ‘technology upgrading’ through higher contemporaneous process innovation rates

Suggested Citation

  • Aoife Hanley & Joaquín Monreal-Pérez, 2011. "Are Newly Exporting Firms more Innovative? Findings from Matched Spanish Innovators," Kiel Working Papers 1735, Kiel Institute for the World Economy.
  • Handle: RePEc:kie:kieliw:1735
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    File URL: https://www.ifw-members.ifw-kiel.de/publications/are-newly-exporting-firms-more-innovative-findings-from-matched-spanish-innovators/kwp_1735.pdf
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    More about this item

    Keywords

    exporting; innovation; Propensity Score Kernel Matching; Learning-by-exporting;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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