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Complementarity among innovations for exporting in German manufacturing firms

Listed author(s):
  • Susanna Mancinelli

    ()

  • Rosa Bernardini Papalia
  • Silvia Bertarelli

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.

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File URL: http://out.economia.unife.it/uploads/dip_deit/quaderni/2015044.pdf
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Paper provided by University of Ferrara, Department of Economics in its series Working Papers with number 2015044.

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Length: 45 pages
Date of creation: 20 Feb 2015
Handle: RePEc:udf:wpaper:2015044
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  1. Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2003. "Plants and Productivity in International Trade," American Economic Review, American Economic Association, vol. 93(4), pages 1268-1290, September.
  2. Zvi Griliches, 1998. "R&D and Productivity: The Econometric Evidence," NBER Books, National Bureau of Economic Research, Inc, number gril98-1, Enero-Jun.
  3. Cassiman, Bruno & Golovko, Elena & Martínez-Ros, Ester, 2010. "Innovation, exports and productivity," International Journal of Industrial Organization, Elsevier, vol. 28(4), pages 372-376, July.
  4. Martin Carree & Boris Lokshin & René Belderbos, 2011. "A note on testing for complementarity and substitutability in the case of multiple practices," Journal of Productivity Analysis, Springer, vol. 35(3), pages 263-269, June.
  5. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
  6. Partha Deb & Pravin K. Trivedi, 2006. "Specification and simulated likelihood estimation of a non-normal treatment-outcome model with selection: Application to health care utilization," Econometrics Journal, Royal Economic Society, vol. 9(2), pages 307-331, 07.
  7. Aida Caldera, 2010. "Innovation and exporting: evidence from Spanish manufacturing firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(4), pages 657-689, December.
  8. Alfonso Miranda & Sophia Rabe-Hesketh, 2006. "Maximum likelihood estimation of endogenous switching and sample selection models for binary, ordinal, and count variables," Stata Journal, StataCorp LP, vol. 6(3), pages 285-308, September.
  9. James Heckman & Salvador Navarro-Lozano, 2004. "Using Matching, Instrumental Variables, and Control Functions to Estimate Economic Choice Models," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 30-57, February.
  10. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
  11. Austin Nichols, 2007. "Causal inference with observational data," Stata Journal, StataCorp LP, vol. 7(4), pages 507-541, December.
  12. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-1248, September.
  13. N. E. Savin, 1980. "The Bonferroni and the Scheffé Multiple Comparison Procedures," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 255-273.
  14. Sascha Becker & Peter Egger, 2013. "Endogenous product versus process innovation and a firm’s propensity to export," Empirical Economics, Springer, vol. 44(1), pages 329-354, February.
  15. Freedman, David A. & Sekhon, Jasjeet S., 2010. "Endogeneity in Probit Response Models," Political Analysis, Cambridge University Press, vol. 18(02), pages 138-150, March.
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