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Imported input varieties and product innovation: evidence from five developing countries

Marijke J.D. Bos () and Gonzague Vannoorenberghe ()
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Marijke J.D. Bos: Ministry of Economic Affairs, The Hague, Netherlands
Gonzague Vannoorenberghe: UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)

No 2018009, Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: We examine how access to imported intermediate inputs affects firm-level product innovation in five developing counties. We combine trade data with survey data on innovation and develop a method to determine whether new inputs were essential for the product innovation. We find evidence that the number of newly imported varieties has a significant impact on product innovations that rely on new inputs and provide suggestive evidence that this effect comes from access to better quality imports. We extend our analysis to assess the consequences of the increase in the number of Chinese exporting firms on product innovation in developing countries.

Keywords: product innovation; trade; new intermediate inputs (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ino, nep-int and nep-sbm
Date: 2018-10-10
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2018009

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