On the Relationship between Innovation and Export: The Case of Australian SMEs

30 Pages Posted: 28 Feb 2013

See all articles by Alfons Palangkaraya

Alfons Palangkaraya

Centre for Transformative Innovation, Faculty of Business and Law, Swinburne University of Technology; Swinburne University of Technology - Centre for Transformative Innovation

Date Written: February 2013

Abstract

This paper investigates the link between innovation and export market participation using Australian small and medium enterprises (SMEs) data. The results show that export and innovation are positively linked. Depending on the industry and the type of innovation (process or product), innovation may lead to export and, to a lesser extent, export may lead to innovation. Firms in the primary sector (agriculture and mining) show the strongest evidence that innovation leads to export. From firms in the services sector, there is indication that only process innovation leads to export. Also, only in this sector, there is evidence that export may lead to (process) innovation.

Keywords: innovation, export, small and medium enterprises, propensity score matching

JEL Classification: F14, O12, O14, O31

Suggested Citation

Palangkaraya, Alfons and Palangkaraya, Alfons, On the Relationship between Innovation and Export: The Case of Australian SMEs (February 2013). Melbourne Institute Working Paper No. 04/13, Available at SSRN: https://ssrn.com/abstract=2226720 or http://dx.doi.org/10.2139/ssrn.2226720

Alfons Palangkaraya (Contact Author)

Swinburne University of Technology - Centre for Transformative Innovation ( email )

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Centre for Transformative Innovation, Faculty of Business and Law, Swinburne University of Technology ( email )

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