Product and Process Innovation and the decision to Export: Firm-level evidence for Belgium

Van Beveren, Ilke;Vandenbussche, Hylke
(2009) , 31 pages

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Authors
  • Van Beveren, IlkeLessius University College, Antwerp
    Author
  • Vandenbussche, HylkeUCLouvain
    Author
Abstract
Using data from the Community Innovation Survey for Belgium in two consecutive periods, this paper explores the relationship between firm-level innovation activities and the propensity to start exporting. To measure innovation, we include indicators of both innovative effort (R&D activities) as well as innovative output (product and process innovation). Our results suggest that the combination of product and process innovation, rather than either of the two in isolation, increases a firm’s probability to enter the export market. After controlling for potential endogeneity of the innovation activities, only firms with a sufficiently high probability to start exporting engage in product and process innovation prior to their entry on the export market, pointing to the importance of self-selection into innovation.
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Citations

Van Beveren, I., & Vandenbussche, H. (2009). Product and Process Innovation and the decision to Export: Firm-level evidence for Belgium (IRES Discussion Papers 2009032). https://hdl.handle.net/2078.5/36023