Entry into Export Markets as an Incentive to Innovate: Evidence from the Russian Manufacturing Industry Survey

30 Pages Posted: 13 Feb 2012

See all articles by Gonchar Ksenia

Gonchar Ksenia

National Research University Higher School of Economics

Boris Kuznetsov

Government of the United States of America - Bureau of Economic Analysis (BEA); National Research University Higher School of Economics

Victoria Golikova

National Research University Higher School of Economics

Date Written: December 27, 2011

Abstract

This paper examines how export and export destination stimulates innovation by Russian manufacturing firms. The discussion is guided by the theoretical models for heterogeneous firms engaged in international trade which predict that, because more productive firms generate higher profit gains, they are able to afford high entry costs, and trade liberalization encourages the use of more progressive technologies and brings higher returns from R&D investments. We will test the theory using a panel of Russian manufacturing firms surveyed in 2004 and 2009, and use export entry and export destinations to identify the causal effects on various direct measures of technologies, skill and management innovations. We find evidence on exporters’ higher R&D financing, better management and technological upgrades. Exporters, most noticeably long-time and continuous exporters, are more active in monitoring their competitors, both domestically and internationally, and more frequently employ highly qualified managers. Exporters are more active in IT implementation. When it comes to export destination, we find that non-CIS exporters are more prone to learning. However, we cannot identify that government or foreign ownership shows any impact on learning-by-exporting effects.

Keywords: innovation, export, export destination, learning effects

JEL Classification: F14, O31, O33, P23

Suggested Citation

Ksenia, Gonchar and Kuznetsov, Boris and Golikova, Victoria, Entry into Export Markets as an Incentive to Innovate: Evidence from the Russian Manufacturing Industry Survey (December 27, 2011). Higher School of Economics Research Paper No. WP BRP 11/EC/2011, Available at SSRN: https://ssrn.com/abstract=2002932 or http://dx.doi.org/10.2139/ssrn.2002932

Gonchar Ksenia

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Boris Kuznetsov (Contact Author)

Government of the United States of America - Bureau of Economic Analysis (BEA) ( email )

Maly Gnezdnikovsky 4
Moscow 103009
Russia
+7 502 937 6750 (Phone)
+7 502 937 6753 (Fax)

National Research University Higher School of Economics

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Victoria Golikova

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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