Product and process innovation and firms' decision to export
(2010) Journal of Economic Policy Reform (Print) — Vol. 13, n° 1, p. 3-24 (2010)
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- Authors
- Abstract
- We analyze the relationship between firm-level innovation activities and firms' propensity to start exporting for firms in a small open economy. We measure innovation by innovative effort (R&D) as well as by innovative output (product and process innovation). After carefully correcting for endogeneity and selection issues, the evidence points to firms self-selecting into innovation in anticipation of their entry into export markets, rather than product and process innovation triggering entry into the export market. These results suggest that governments can foster firm-level innovation through trade liberalization.
- Affiliations
Katholieke Universiteit Leuven LICOS Centre for Institutions and Economic Performance
Citations
Van Beveren, I., & Vandenbussche, H. (2010). Product and process innovation and firms’ decision to export. Journal of Economic Policy Reform (Print), 13(1), 3-24. https://doi.org/10.1080/17487870903546267 (Original work published 2010)