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Are newly exporting firms more innovative? Findings from matched Spanish innovators

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  • Hanley, Aoife
  • Monreal-Pérez, Joaquín

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

  • Hanley, Aoife & Monreal-Pérez, Joaquín, 2011. "Are newly exporting firms more innovative? Findings from matched Spanish innovators," Kiel Working Papers 1735, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1735
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    References listed on IDEAS

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    Cited by:

    1. Chen, Ting & Chen, Xianmeng & Wang, Cong & Xiang, Xunyong, 2018. "Export behavior and firm innovation: New method and evidence," Economics Letters, Elsevier, vol. 170(C), pages 76-78.
    2. Hehua Zhao & Hongwen Chen & Ying Fang & Apei Song, 2022. "Transfer Characteristics of Embodied Carbon Emissions in Export Trade—Evidence from China," Sustainability, MDPI, vol. 14(13), pages 1-21, June.
    3. Jaana Rahko, 2016. "Internationalization of corporate R&D activities and innovation performance," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(6), pages 1019-1038.
    4. Tello, Mario D., 2017. "Innovation and productivity in services and manufacturing firms: the case of Peru," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    5. Hanley, Aoife & Monreal Pérez, Joaquín, 2012. "Are newly exporting firms more innovative? Findings from matched Spanish innovators," Economics Letters, Elsevier, vol. 116(2), pages 217-220.
    6. Bruno Karoubi & Marjorie Lecerf & Gael Bertrand, 2018. "Are export promotion programs efficient for small and medium enterprises?," Economics Bulletin, AccessEcon, vol. 38(1), pages 105-110.
    7. Adriana Peluffo & Inmaculada Martinez-Zarzoso & Ernesto Silva, 2020. "New stuff or better ways: what matters to access international markets?," Journal of Applied Economics, Taylor & Francis Journals, vol. 23(1), pages 656-678, January.
    8. Peter S. Eppinger & Nicole Meythaler & Marc-Manuel Sindlinger & Marcel Smolka, 2018. "The great trade collapse and the Spanish export miracle: Firm-level evidence from the crisis," The World Economy, Wiley Blackwell, vol. 41(2), pages 457-493, February.
    9. Girma, Sourafel & Gong, Yundan & Görg, Holger & Lancheros, Sandra, 2015. "Investment liberalisation, technology take-off and export markets entry: Does foreign ownership structure matter?," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 254-269.
    10. Girma, Sourafel & Gong, Yundan & Görg, Holger & Lancheros, Sandra, 2012. "Foreign ownership structure, technology upgrading and exports: Evidence from Chinese firms," Kiel Working Papers 1793, Kiel Institute for the World Economy (IfW Kiel).
    11. Mario D. Tello, 2015. "Firms' Innovation, Public Financial Support, and Total Factor Productivity: The Case of Manufactures in Peru," Review of Development Economics, Wiley Blackwell, vol. 19(2), pages 358-374, May.
    12. Ping-Lung Hsin & Tobias Haepp & Yen-Lien Kuo, 2013. "Export destinations, and company investments in R&D and capital," Economics Bulletin, AccessEcon, vol. 33(4), pages 2851-2859.
    13. Zhen Xu & Xin Zhong & Zhongyan Zhang, 2022. "Does the Sino–US Trade Friction Promote Firm Innovation? The Role of the Export Grab Effect," Sustainability, MDPI, vol. 14(5), pages 1-20, February.
    14. Matthew A. COLE & Robert R.J. ELLIOTT & OKUBO Toshihiro & Liyun ZHANG, 2017. "The Pollution Outsourcing Hypothesis: An empirical test for Japan," Discussion papers 17096, Research Institute of Economy, Trade and Industry (RIETI).

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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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