Does persistence in internationalization and innovation influence firms’ performance?
Stefano Iandolo and
EconStor Preprints from ZBW - Leibniz Information Centre for Economics
In this paper, we analyze the joint effect of persistency in innovation and export on firms' total factor productivity (measured in accordance with Levinsohn and Petrin, 2003). For this purpose, we use data on Italian manufacturing firms covering an eight-year time span (1998-2006) which allow us to measure the effect of different time activities, both in innovation and in export and the existence of different pathways linking them. We distinguish between persistent and temporary exporting firms as well as frequent and temporary innovators, to test (through OLS and a two-step system GMM) the existence of any combined learning-by-exporting and learning-by-doing effects. We find that persistent innovation efforts seem to be associated with a permanent presence in foreign markets since persistently innovative and exporting firms have better productivity results than persistently exporting (innovating) firms with no persistent innovation (export). Combining both strategies can be an opportunity to internalize knowledge flows coming from long-lasting exposure to foreign markets.
Keywords: Export; Innovation; Firms; Productivity; GMM (search for similar items in EconPapers)
JEL-codes: D24 F10 F14 F23 O30 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ino, nep-int, nep-sbm and nep-tid
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Journal Article: Does persistence in internationalization and innovation influence firms’ performance? (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:esprep:189680
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