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Imported input varieties and product innovation : evidence from five developing countries

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  • Marijke J.D. Bos

    (Ministry of Economic Affairs, The Hague, Netherlands)

  • Gonzague Vannoorenberghe

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

We examine how access to imported intermediate inputs affects firm-level product innovation in five developing counties. We combine trade data with survey data on innovation and develop a method to determine whether new inputs were essential for the product innovation. We find evidence that the number of newly imported varieties has a significant impact on product innovations that rely on new inputs and provide suggestive evidence that this effect comes from access to better quality imports. We extend our analysis to assess the consequences of the increase in the number of Chinese exporting firms on product innovation in developing countries.

Suggested Citation

  • Marijke J.D. Bos & Gonzague Vannoorenberghe, 2018. "Imported input varieties and product innovation : evidence from five developing countries," LIDAM Discussion Papers IRES 2018009, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:2018009
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    Cited by:

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    3. Dreger, Christian & Fourné, Marius & Holtemöller, Oliver, 2023. "Globalization, productivity growth, and labor compensation," IWH Discussion Papers 7/2022, Halle Institute for Economic Research (IWH), revised 2023.
    4. Dung Nguyen‐Van & Chia‐Hua Chang, 2021. "Internationalization and product innovation in ASEAN: The moderating role of organizational innovation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 437-462, March.
    5. Kexuan Zhou & Sanjay Kumar & Futao Lu & Qiaoyun Fang & Linhui Yu, 2022. "Has the Belt and Road Initiative Improved the Quality of Food Imported by Chinese Enterprises?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(2), pages 60-83, March.
    6. Anthony Krakah & Gonzague Vannoorenberghe, 2023. "Spatial concentration and firm-level innovation Evidence from Ghana," LIDAM Discussion Papers IRES 2023005, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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    More about this item

    Keywords

    product innovation; trade; new intermediate inputs;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

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