On the Relationship between Innovation and Export: The Case of Australian SMEs

Alfons Palangkaraya

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: This paper investigates the link between innovation and export market participation using Australian small and medium enterprises (SMEs) data. The results show that export and innovation are positively linked. Depending on the industry and the type of innovation (process or product), innovation may lead to export and, to a lesser extent, export may lead to innovation. Firms in the primary sector (agriculture and mining) show the strongest evidence that innovation leads to export. From firms in the services sector, there is indication that only process innovation leads to export. Also, only in this sector, there is evidence that export may lead to (process) innovation.

Keywords: Innovation; export; small and medium enterprises; propensity score matching (search for similar items in EconPapers)
JEL-codes: F14 O12 O14 O31 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2013-02
New Economics Papers: this item is included in nep-cdm, nep-cse, nep-ent, nep-ino, nep-knm and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2013n04

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