Export, R&D and new products. a model and a test on European industries

Dario Guarascio, Mario Pianta and Francesco Bogliacino

Journal of Evolutionary Economics, 2016, vol. 26, issue 4, No 10, 869-905

Abstract: Abstract In this article we extend the model developed by Bogliacino and Pianta (Industrial and Corporate Change 22 649, 2013, b) on the link between R&D, innovation and economic performance, considering the impact of innovation on export success. We develop a simultaneous three equation model in order to investigate the existence of a ‘virtuous circle’ between industries’ R&D, share of product innovators and export market shares. We investigate empirically – at the industry level – three key relationships affecting the dynamics of innovation and export performance: first, the capacity of firms to translate their R&D efforts in new products; second, the role of innovation as a determinant of export market shares; third, the export success as a driver of new R&D efforts. The model is tested for 38 manufacturing and service sectors of six European countries over three time periods, from 1995 to 2010. The model effectively accounts for the dynamics of R&D efforts, innovation and international performance of European industries. Moreover, important differences across countries emerge when we split our sample into a Northern group – Germany, the Netherlands and the United Kingdom – and a Southern group – France, Italy and Spain. We find that the ‘virtuous circle’ between innovation and competitiveness holds for Northern economies only, while Southern industries fail to translate innovation efforts into export success.

Keywords: Export; R&D; Innovation; Three stage least squares; Europe (search for similar items in EconPapers)
JEL-codes: F12 F14 O31 O33 O52 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (18)

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Related works:
Chapter: Export, R&D and New Products: A Model and a Test on European Industries (2017)
Working Paper: Export, R&D and New Products. A Model and a Test on European Industries (2014)
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DOI: 10.1007/s00191-016-0445-9

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