Exploring innovation and export interplay in Canadian firms

Claudia De Fuentes, Jorge Niosi and Jahan Ara Peerally

Economics of Innovation and New Technology, 2021, vol. 30, issue 8, 786-806

Abstract: We propose that there exists a virtuous circular relationship between firm exports and firm innovation whereby they drive and reinforce each other. We analyse two key elements which support this relationship, namely policy initiatives and firm-level strategies for innovation and exports. We use data from Canadian innovation surveys, and the two-stage least squares technique to explore the interplay between innovation and exports. Our results confirm our hypothesis; however, the effect of policies and firm-level strategies are not uniform or predictable across sectors and time.

Date: 2021
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DOI: 10.1080/10438599.2020.1786999

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