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Innovation and Exporting: Edvidence from Spanish Manufacturing Firms

Aida Caldera

No 2009_014, Working Papers ECARES from ULB -- Universite Libre de Bruxelles

Abstract: This paper investigates the relationship between innovation and the export behavior of firms using data from a representative panel of Spanish firms over 1991-2002. It presents a simple theoretical model of the firm decision to export and innovate that guides the econometric analysis. Consistent with the predictions of the theoretical model, the econometric results suggest a positive effect of firm innovation on the probability of participation in export markets. The results further reveal the heterogeneous effects of different types of innovations on the firm export participation. In particular, product upgrading appears to have a larger effect on the firm export participation than the introduction of cost-saving innovations. These findings are robust to alternative regression techniques to control for firm unobserved heterogeneity, to dynamic specifications and to the use of instrumental variables regressions to control for the potential endogeneity between innovation and exporting.

Keywords: Firm data; innovation; trade. (search for similar items in EconPapers)
JEL-codes: F10 (search for similar items in EconPapers)
Pages: 40 p.
Date: 2009
New Economics Papers: this item is included in nep-ino, nep-int and nep-tid
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Journal Article: Innovation and exporting: evidence from Spanish manufacturing firms (2010) Downloads
Working Paper: Innovation and exporting: Evidence from Spanish manufacturing firms (2010)
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