DP6411 Innovation and the Export-productivity Link
|Author(s):||Bruno Cassiman, Elena Golovko|
|Publication Date:||August 2007|
|Keyword(s):||exports, innovation, process innovation, product innovation, productivity|
|JEL(s):||D21, O31, O32|
|Programme Areas:||Industrial Organization, International Trade and Regional Economics|
|Link to this Page:||www.cepr.org/active/publications/discussion_papers/dp.php?dpno=6411|
We explore the relationship between innovation activity, productivity, and exports using a panel of Spanish manufacturing firms for 1990-1998. Our results - based on non-parametric tests - suggest that firm innovation status is important in explaining the positive export-productivity association documented in prior research. For the sample of small innovating firms, we find no significant differences in productivity levels between exporters and non-exporters. Especially product innovation seems to explain the positive association between exports and productivity for this group of firms. For small non-innovating firms with low and medium productivity levels exporting firms continue to exhibit higher productivity than non-exporting firms.