Does innovation cause exports? Evidence from exogenous innovation impulses and obstacles using German micro data

Stefan Lachenmaier and Ludger Wößmann
Authors registered in the RePEc Author Service: Ludger Woessmann

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: Trade and growth theories predict a mutual causation of innovation and exports. We test empirically whether innovation causes exports using a uniquely rich German micro dataset. Our instrumental-variable strategy identifies variation in innovative activity that is caused by specific impulses and obstacles reported by the firms, which can reasonably be viewed as exogenous to firms’ export performance. We find that innovation attributable to this variation leads to an increase of roughly seven percentage points in the export share of German manufacturing firms. The evidence is robust to several alternative specifications and heterogeneous across sectors, being stronger in technology-intensive sectors.

Date: 2006
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Citations: View citations in EconPapers (134)

Published in Oxford Economic Papers 2 58(2006): pp. 317-350

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Related works:
Journal Article: Does innovation cause exports? Evidence from exogenous innovation impulses and obstacles using German micro data (2006)
Working Paper: Does Innovation Cause Exports? Evidence from Exogenous Innovation Impulses and Obstacles Using German Micro Data (2004)
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