Complementarity among innovations for exporting in German manufacturing firms

Susanna Mancinelli (), Rosa Bernardini Papalia and Silvia Bertarelli

No 2015044, Working Papers from University of Ferrara, Department of Economics

Abstract: 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.

Keywords: Export propensity; complementarity among innovations; multiple hypothesis testing; binary choice model (search for similar items in EconPapers)
JEL-codes: C12 C25 F14 O31 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2015-02-20
New Economics Papers: this item is included in nep-ino
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Citations: View citations in EconPapers (1)

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