Learning from Trade Through Innovation

29 Pages Posted: 27 Apr 2015

See all articles by Jože P. Damijan

Jože P. Damijan

University of Ljubljana, Slovenia - Department of International Economics

Črt Kostevc

University of Ljubljana - Faculty of Economics

Date Written: June 2015

Abstract

This paper explores the idea that firms learn from trade by introducing either new products or processes influenced by their trade links with foreign markets. By exploring microdata for Spain, including data on innovation and trade, we find a robust relationship between imports, exports and innovation. The results suggest that firms learn primarily from import links, which enable them to innovate and to ‘dress up’ for starting to export. This sequencing between trade and innovation, however, is shown to be more pronounced for small firms only and technologically advanced firms.

Suggested Citation

Damijan, Joze P. and Kostevc, Crt, Learning from Trade Through Innovation (June 2015). Oxford Bulletin of Economics and Statistics, Vol. 77, Issue 3, pp. 408-436, 2015. Available at SSRN: https://ssrn.com/abstract=2598835 or http://dx.doi.org/10.1111/obes.12071

Joze P. Damijan (Contact Author)

University of Ljubljana, Slovenia - Department of International Economics ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia
+386 61 189 24 00 (Phone)
+386 61 189 26 98 (Fax)

Crt Kostevc

University of Ljubljana - Faculty of Economics ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

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