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Complementarity among innovations for exporting in German manufacturing firms

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  • Susanna Mancinelli

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  • Rosa Bernardini Papalia
  • Silvia Bertarelli

Abstract

This paper investigates whether firms’ joint implementation of product, process and organizational innovation may foster their propensity of exporting. We study the relationship of complementarity among innovation practices when exporting is the firms’ objective function, through the properties of supermodular functions. We propose a unified strategy to perform multiple inequality testing implied by the properties of supermodular functions. Bootstrapping is used when innovation variables are exogenous. When endogeneity of binary variables cannot be rejected complementarity is checked through propensity score matching and instrumental variable methods. Using data from CIS4, heterogeneous incentives of exploiting complementarity among German manufacturing firms’ innovation practices emerge by export destinations and when size specific conditions are satisfied.

Suggested Citation

  • Susanna Mancinelli & Rosa Bernardini Papalia & Silvia Bertarelli, 2015. "Complementarity among innovations for exporting in German manufacturing firms," Working Papers 2015044, University of Ferrara, Department of Economics.
  • Handle: RePEc:udf:wpaper:2015044
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    References listed on IDEAS

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    Cited by:

    1. Silvia Bertarelli & Chiara Lodi, 2015. "Innovation and exporting: a study on Eastern European firms," Working Papers 2015104, University of Ferrara, Department of Economics.

    More about this item

    Keywords

    Export propensity; complementarity among innovations; multiple hypothesis testing; binary choice model;

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • 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

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