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Innovation and export behaviour at the firm level

Katherine Wakelin

No 94, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

Abstract: This paper considers the role of innovation in determining export behaviour for a sample of UK firms. The sample includes firms which have had a major innovation; based on the SPRU survey of innovations, and are defined as innovating firms. The rest of the sample of made up of non-innovating firms which have not had a major innovation. Export behaviour is defined in a dual way; both as the probability of a firm exporting and the propensity to export of the exporting firms. The former is estimated using a Probit model, and the latter is treated as a truncated estimation. An empirical model of the determinants of export behaviour is estimated; including both firm specific and sector specific characteristics. The determinants are found to vary between innovating and non-innovating firms. Market characteristics appear to have more influence on the export behaviour of non-innovating firms; innovating firms rely more on firm characteristics. The paper concludes that the capacity to innovate changes the performance of the firm with respect to non-innovating firms.

Date: 1996-05
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:nsr:niesrd:94

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