Innovation and the Export-Productivity Link

28 Pages Posted: 31 Jul 2007

See all articles by Bruno Cassiman

Bruno Cassiman

Harvard University - Business School (HBS)

Elena Golovko

Tilburg University - Tilburg University School of Economics and Management

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Date Written: April 2007

Abstract

In this paper, 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 critical 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 this positive association between exports and productivity. For small non-innovating firms with the low and medium productivity levels, however, exporting firms continue to exhibit higher productivity than non-exporting firms.

Keywords: innovation, productivity, exports, industry dynamics

Suggested Citation

Cassiman, Bruno and Golovko, Elena, Innovation and the Export-Productivity Link (April 2007). IESE Business School Working Paper No. 688, Available at SSRN: https://ssrn.com/abstract=1003366 or http://dx.doi.org/10.2139/ssrn.1003366

Bruno Cassiman (Contact Author)

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Elena Golovko

Tilburg University - Tilburg University School of Economics and Management ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

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