Becker, Sascha O. and Egger, Peter H.. (2009) Endogenous product versus process innovation and a firm’s propensity to export. Empirical Economics . ISSN 0377-7332 (In Press)

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Abstract

This article provides an empirical analysis of the effects of new product versus process innovations on export propensity at the firm level. Product innovation is a key factor for successful market entry in models of creative destruction and Schumpeterian growth. Process innovation helps securing a firm’s market position given the characteristics of its product supply. Both modes of innovation are expected to raise a firm’s propensity to export. According to newtrade theory, we conjecture that product innovation is relatively more important in that regard. We investigate these hypotheses in a rich survey panel data set with information about new innovations of either type. With a set of indicators regarding innovation motives and impediments and continuous variables at the firm and industry level at hand, we may determine the probability of launching new innovations and their impact on export propensity at the firm level through a double treatment approach.

Item Type:	Journal Article
Subjects:	H Social Sciences > HF Commerce
Divisions:	Faculty of Social Sciences > Economics
Journal or Publication Title:	Empirical Economics
Publisher:	Physica-Verlag GmbH und Co.
ISSN:	0377-7332
Date:	2009
Identification Number:	10.1007/s00181-009-0322-6
Status:	Peer Reviewed
Publication Status:	In Press
Access rights to Published version:	Restricted or Subscription Access
Description:	Forthcoming - available online
URI:	http://wrap.warwick.ac.uk/id/eprint/45513

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