Product innovation and Export behaviour in French dairy industry

Kevin Randy Chemo Dzukou (kevin-randy.chemo-dzukou@inrae.fr), Sabine Duvaleix and Karine Latouche
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Kevin Randy Chemo Dzukou: SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST

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Abstract: In this article, we are speci cally interested in product innovation as one potential driver of competitiveness. More precisely, we examine the relationship be- tween product innovation (seen as a way to reach quality di erentiation on foreign markets) and the export behaviour at the rm-product level in a theoretical model and we propose to test the predictions of this model with an application to the French dairy industry. The main issue addressed is whether product innovation, i.e. quality- enhancing strategy, improves rms' export performance.We especially examine to what extend product innovation a ect the quantity sold and the price charged on foreign market. Based on a unique data set detailing innovation at the rm-product-country level in the French dairy sector, we test the predictions of the model. Accounting for the self-selection process highlighted in a preliminary analysis, our results show that the quantity sold and the prices charged by rms increase after the introduction of an innovation at the product level.

Keywords: heterogeneous products within firms; incremental and soft innovation; export behaviour (search for similar items in EconPapers)
Date: 2019-12-09
New Economics Papers: this item is included in nep-int
Note: View the original document on HAL open archive server: https://hal.science/hal-02503323v1
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Published in Congrès de l’IATRC, International Agricultural Trade Research Center (IATRC). USA., Dec 2019, Washington, United States. 22 p

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