Are Exporters More Likely to Introduce Product Innovations?
Massimiliano Bratti and
Giulia Felice ()
No 306, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano
Abstract:
A firm\'s export status may improve its capacity of introducing product innovations. We explore this idea using very rich firm-level data on Italian A firm\'s export status may improve its capacity of introducing product innovations. We explore this idea using very rich firm-level data on Italian Manufacturing, and sector-province specific measures of firms\' distance from export markets and of their export market potential as instruments for differences in export activities. We find that exporting significantly increases the likelihood of introducing product innovations and that this effect is not fully captured by the channels commonly stressed by the theoretical literature, such as larger market (and accordingly firm) size or higher investments in R&D. We argue that heterogeneity in foreign customers\' tastes and needs may explain our findings.
Keywords: Exporters; Firms; Italy; Manufacturing; Product Innovation (search for similar items in EconPapers)
JEL-codes: F1 L2 O3 (search for similar items in EconPapers)
Pages: 34
Date: 2011-05-09, Revised 2011-05-09
New Economics Papers: this item is included in nep-ino, nep-int, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)
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Journal Article: Are Exporters More Likely to Introduce Product Innovations? (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:csl:devewp:306
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