Endogenous Product versus Process Innovation and a Firm’s Propensity to Export

Sascha Becker, Peter Egger and Sascha O. Becker
Authors registered in the RePEc Author Service: Sascha O. Becker

No 1906, CESifo Working Paper Series from CESifo

Abstract: This paper provides an empirical analysis of the effects of new product versus process innovations on export propensity at the firm level. Product innovation is a key factor for successful market entry in models of creative destruction and Schumpeterian growth. Process innovation helps securing a firm’s market position given the characteristics of its product supply. Both modes of innovation are expected to raise a firm’s propensity to export. According to new trade theory, we conjecture that product innovation is relatively more important in that regard. We investigate these hypotheses in a rich survey panel data set with information about new innovations of either type. With a set of indicators regarding innovation motives and impediments and continuous variables at the firm and industry level at hand, we may determine the probability of launching new innovations and their impact on export propensity at the firm level through a double treatment approach.

Keywords: product innovation; process innovation; propensity to export; multiple treatment effects estimation (search for similar items in EconPapers)
JEL-codes: F10 L10 O30 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (62)

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Journal Article: Endogenous product versus process innovation and a firm’s propensity to export (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_1906

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