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Innovation, Exports and Productivity: Learning and Self selection in Chile

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  • Claudio Bravo-Ortega
  • Jose Miguel Benavente
  • Álvaro González

Abstract

Both exports and innovation (in particular, research and development) are key factors for the growth of firms and economies, but there has been little study of their combined impact on them, especially in developing countries. This article uses plant-level data from Chile to examine the relationship between productivity, R&D expenditure, and exports. We find that firms that invest in R&D are considerably more likely to export, but the reverse is not true. Even though exporting does not stimulate investment in R&D, both exports and R&D have a joint effect on improving productivity. These results allow us to recover the private return to “learning by exporting” across different sectors.

Suggested Citation

  • Claudio Bravo-Ortega & Jose Miguel Benavente & Álvaro González, 2013. "Innovation, Exports and Productivity: Learning and Self selection in Chile," Working Papers wp371, University of Chile, Department of Economics.
    • Handle: RePEc:udc:wpaper:wp371
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    Cited by:

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    2. Arboleda, Xavier & Bermúdez-Barrezueta, Natalia & Camino-Mogro, Segundo, 2022. "Production and enterprise profitability in Ecuador’s crop-growing sector," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    3. Wu, Lichao & Wei, Yingqi & Wang, Chengang, 2021. "Disentangling the effects of business groups in the innovation-export relationship," Research Policy, Elsevier, vol. 50(1).
    4. Trinh, Long, 2015. "Dynamics of innovation and internationalization among Vietnamese SMEs," MPRA Paper 68308, University Library of Munich, Germany, revised 26 Nov 2015.
    5. Weize Sun & Mingtao Yu & Haotian Zhang & Yifan Zhang, 2022. "Does Uncertainty of Trade Environment Promote Green Technological Innovation? Empirical Evidence from China," Sustainability, MDPI, vol. 14(23), pages 1-22, December.
    6. Trinh, Long Q., 2016. "Dynamics of Innovation and Internationalization among Small and Medium-Sized Enterprises in Viet Nam," ADBI Working Papers 580, Asian Development Bank Institute.
    7. Segundo Camino‐Mogro & Natalia Bermudez‐Barrezueta, 2021. "Productivity determinants in the construction sector in emerging country: New evidence from Ecuadorian firms," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2391-2413, November.
    8. Ermolaeva, L. & Freixanet, J. & Panibratov, A., 2018. "The interplay of firms' absorptive capacity, export orientation and innovation strategies: Evidence from Russia," Working Papers 15108, Graduate School of Management, St. Petersburg State University.
    9. Ana Martins & Tiago Domingues & Catarina Branco, 2018. "The Determinants of TFP Growth in the Portuguese Service Sector," GEE Papers 0114, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Nov 2018.
    10. Kiss, János, 2022. "Innovatívabbak-e a termelékeny és az exportáló vállalatok? Egy magyar feldolgozóipari minta elemzése [Are productive and exporting companies more innovative? Analysis of a sample of Hungarian mediu," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 502-516.
    11. Vergara, Sebastián, 2021. "The role of productive and technological capabilities in export dynamics in developing countries," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    12. Fernández, Sara & Torrecillas, Celia & Labra, Romilio Ernesto, 2021. "Drivers of eco-innovation in developing countries: the case of Chilean firms," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    13. Goya, Daniel, 2014. "Política industrial: Qué es, por qué es necesaria, y su pasado, presente y futuro en Chile [Industrial policy: What is it, why it is necessary, and its past, present and future in Chile]," MPRA Paper 64881, University Library of Munich, Germany.
    14. Ortiz, Rodrigo & Fernandez, Viviana, 2022. "Business perception of obstacles to innovate: Evidence from Chile with pseudo-panel data analysis," Research in International Business and Finance, Elsevier, vol. 59(C).
    15. Fábio Batista & José Eduardo Matos & Miguel Costa Matos, 2017. "Assessing the Competitiveness of the Portuguese Footwear Sector," GEE Papers 0066, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Feb 2017.
    16. Cristian Mardones & Annabella Zapata, 2019. "Determinants of public funding for innovation in Chilean firms," Contaduría y Administración, Accounting and Management, vol. 64(1), pages 41-42, Enero-Mar.
    17. Naqeeb Ur Rehman, 2017. "Self-selection and learning-by-exporting hypotheses: micro-level evidence," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 133-160, April.
    18. Carlos A. Carrasco & Edgar Demetrio Tovar-García, 2021. "Trade and growth in developing countries: the role of export composition, import composition and export diversification," Economic Change and Restructuring, Springer, vol. 54(4), pages 919-941, November.
    19. Roberto Álvarez & Claudio Bravo-Ortega & Andrés Zahler, 2015. "Innovation and Productivity in Services: Evidence from Chile," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(3), pages 593-611, May.
    20. Ana Rita Marques & Cátia Silva, 2018. "Assessing the Competitiveness of the Portuguese Chemical Sector," GEE Papers 0110, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Sep 2018.
    21. Daniel Gonçalves & Ana Martins, 2016. "The Determinants of TFP Growth in the Portuguese Manufacturing Sector," GEE Papers 0062, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Nov 2016.
    22. Juan Blyde & Gonzalo Iberti & Micaela Mussini, 2018. "When does innovation matter for exporting?," Empirical Economics, Springer, vol. 54(4), pages 1653-1671, June.
    23. Marco Túlio Dinali Viglioni & Mozar José Brito & Cristina Lelis Leal Calegario, 2020. "Innovation and R&D in Latin America and the Caribbean countries: a systematic literature review," Scientometrics, Springer;Akadémiai Kiadó, vol. 125(3), pages 2131-2167, December.
    24. Wu, Lichao & Wei, Yingqi & Wang, Chengang & McDonald, Frank & Han, Xia, 2022. "The importance of institutional and financial resources for export performance associated with technological innovation," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    25. Beckman, Jayson & Ivanic, Maros & Jelliffe, Jeremy & Arita, Shawn, 2021. "Endogenous Adoption of International Agri-food Practices and Standards," Conference papers 333276, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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