The effect of innovation on firm export activity in a developing country: evidence from Ecuador

Iván Trejo-Moya and Juan Fernández-Sastre

International Journal of Business Innovation and Research, 2025, vol. 36, issue 3, 416-434

Abstract: Using data from Ecuador's 2015 Innovation Survey, this article examines whether engaging in innovation activities influences firms' export propensity and intensity, in a developing country like Ecuador. Additionally, it explores whether the introduction of innovative technologies influences firms' export behaviour. Given the observational nature of the data, this paper uses the inverse probability weighting (IPW) method to generate a counterfactual that can be compared to firms that engage in innovative activities and have introduced innovative technologies. The results suggest that engaging in innovation activities has no effect on firms' export behaviour. However, the introduction of innovative technologies increases a firm's propensity to export, though it does not account for firm differences in export intensity.

Keywords: innovation; exports; developing country; inverse probability weighting; IPW; Ecuador. (search for similar items in EconPapers)
Date: 2025
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