Export, R&D and New Products. A Model and a Test on European Industries

Dario Guarascio, Mario Pianta and Francesco Bogliacino

No 1407, Working Papers from University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini

Abstract: In this article we extend the model developed by Bogliacino and Pianta (2013a, 2013b) on the link between R&D, innovation and economic performance, considering the impact of innovation of export success. We develop a simultaneous three equation model in order to investigate the existence of a ?virtuous circle? between industries? R&D, share of product innovators and export market shares. We investigate empirically ? at the industry level ? three key relationships affecting the dynamics of innovation and export performance: first, the capacity of firms to translate their R&D efforts in new products; second, the role of innovation as a determinant of export market shares; third, the export success as a driver of new R&D efforts. The model is tested for 38 manufacturing and service sectors of six European countries over three time periods from 1995 to 2010. The model effectively accounts for the dynamics of R&D efforts, innovation and international performances of European industries. Moreover, important differences across countries emerge when we split our sample in a Northern group ? Germany, the Netherlands and the United Kingdom ? and a Southern group ? France, Italy and Spain. We find that the ?virtuous circle? between innovation and competitiveness holds for Northern economies only, while Southern industries fail to translate innovation efforts into export success.

Keywords: Export; R&D; Innovation; Three Stages Least Squares; Europe (search for similar items in EconPapers)
JEL-codes: F12 F14 O31 O33 O52 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2014, Revised 2014
New Economics Papers: this item is included in nep-cse, nep-ino, nep-int and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_14_07.pdf First version, 2014 (application/pdf)

Related works:
Chapter: Export, R&D and New Products: A Model and a Test on European Industries (2017)
Journal Article: Export, R&D and new products. a model and a test on European industries (2016)
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