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Review of World Economics

, Volume 146, Issue 4, pp 657–689 | Cite as

Innovation and exporting: evidence from Spanish manufacturing firms

  • Aida CalderaEmail author
Original Paper

Abstract

This paper investigates the relationship between innovation and the export behavior of firms using data from a representative panel of Spanish firms over 1991–2002. It presents a simple theoretical model of the firm decision to export and innovate that guides the econometric analysis. Consistent with the predictions of the theoretical model, the econometric results suggest a positive effect of firm innovation on the probability of participation in export markets. The results further reveal the heterogeneous effects of different types of innovations on the firm export participation. In particular, product upgrading appears to have a larger effect on the firm export participation than the introduction of cost-saving innovations. These findings are robust to firm unobserved heterogeneity, dynamic specifications, and to the use of instrumental variables to control for the potential endogeneity between innovation and exporting.

Keywords

Firm data Exporting Innovation R&D 

JEL Classification

F14 O31 

Notes

Acknowledgments

I am grateful to André Sapir for his support and constructive advice. I also thank Bee Yan Aw, Paola Conconi, Harald Fadinger, Victor Ginsburgh, Georg Kirchsteiger, Nicholas Sheard, Ziga Zarnic, two anonymous referees and seminar participants at ECARES-Université Libre de Bruxelles, the University College London ENTER Jamboree and the CEPR SCIFI-GLOW meeting in Madrid for useful discussions and suggestions. The financial support from the Fundación Ramón Areces and the Université Libre de Bruxelles for acquiring the data is gratefully acknowledged.

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Copyright information

© Kiel Institute 2010

Authors and Affiliations

  1. 1.ECARES, Université Libre de BruxellesBrusselsBelgium

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