Learning by Exporting: New Insights from Examining Firm Innovation

Posted: 1 Nov 2005

See all articles by Robert M. Salomon

Robert M. Salomon

New York University (NYU) - Department of Management and Organizational Behavior

J. Myles Shaver

New York University (NYU) - Leonard N. Stern School of Business

Abstract

Empirical findings across many nations show that exporters have superior productivity compared to non-exporters and that this relationship is driven by productive firms becoming exporters. The conclusion drawn from these studies is that there is little learning from exporting. We, however, assess if there are ex post benefits that accrue to exporting firms by examining innovation outcomes. We argue that exporters can often access diverse knowledge inputs not available in the domestic market, that this knowledge can spill back to the focal firm, and that such learning can foster increased innovation. We examine product innovation and patent application counts of a representative sample of Spanish manufacturing firms from 1990-1997. To conduct the analysis, we use a non-linear GMM estimator for exponential models with panel data that allows for predetermined regressors and linear feedback. We find that exporting is associated with innovation. Moreover, the panel data allow us to explore the temporal relationship between exporting and innovation. In contrast to existing findings, we find evidence of learning by exporting - albeit in dimensions not previously examined in the literature.

Keywords: Learning, Exporting, Innovation

JEL Classification: F00, F01, F02, F10, F14, F23, O10, O12, O30, O31

Suggested Citation

Salomon, Robert M. and Shaver, J. Myles, Learning by Exporting: New Insights from Examining Firm Innovation. Journal of Economics and Management Strategy, Forthcoming, Available at SSRN: https://ssrn.com/abstract=825084

Robert M. Salomon (Contact Author)

New York University (NYU) - Department of Management and Organizational Behavior ( email )

44 West 4th Street
New York, NY 10012
United States

J. Myles Shaver

New York University (NYU) - Leonard N. Stern School of Business ( email )

44 West 4th Street
Suite 9-160
New York, NY NY 10012
United States
212-998-0430 (Phone)
212-995-422l (Fax)

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