Export, R&D and New Products

51 Pages Posted: 28 Mar 2015

See all articles by Dario Guarascio

Dario Guarascio

Sapienza University of Rome

Mario Pianta

University of Urbino

Francesco Bogliacino

National University of Colombia - Department of Economics

Date Written: March 19, 2015

Abstract

In this article we extend the model developed by Bogliacino and Pianta (2013a, 2013b) on the link between R&D, innovation and economic performance, considering the impact of innovation of export success. We develop a simultaneous three equation model in order to investigate the existence of a 'virtuous circle' between industries' R&D, share of product innovators and export market shares. We investigate empirically – at the industry level – three key relationships affecting the dynamics of innovation and export performance: first, the capacity of firms to translate their R&D efforts in new products; second, the role of innovation as a determinant of export market shares; third, the export success as a driver of new R&D efforts. The model is tested for 38 manufacturing and service sectors of six European countries over three time periods from 1995 to 2010. The model effectively accounts for the dynamics of R&D efforts, innovation and international performances of European industries. Moreover, important differences across countries emerge when we split our sample in a Northern group – Germany, the Netherlands and the United Kingdom – and a Southern group – France, Italy and Spain. We find that the 'virtuous circle' between innovation and competitiveness holds for Northern economies only, while Southern industries fail to translate innovation efforts into export success.

Keywords: Export, R&D, Innovation, Three Stages Least Squares, Europe.

JEL Classification: F12, F14, O31, O33, O52.

Suggested Citation

Guarascio, Dario and Pianta, Mario and Bogliacino, Francesco, Export, R&D and New Products (March 19, 2015). Available at SSRN: https://ssrn.com/abstract=2585673 or http://dx.doi.org/10.2139/ssrn.2585673

Dario Guarascio (Contact Author)

Sapienza University of Rome ( email )

Rome
Italy

Mario Pianta

University of Urbino ( email )

Via Saffi 2
Urbino, Pesaro-Urbino 61029
Italy

Francesco Bogliacino

National University of Colombia - Department of Economics ( email )

Carrera 30 Calle 45 Ciudad Universitaria
Bogotá
Colombia

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