Working Paper: CEPR ID: DP6411
Authors: Bruno Cassiman; Elena Golovko
Abstract: We explore the relationship between innovation activity, productivity, and exports using a panel of Spanish manufacturing firms for 1990-1998. Our results - based on non-parametric tests - suggest that firm innovation status is important in explaining the positive export-productivity association documented in prior research. For the sample of small innovating firms, we find no significant differences in productivity levels between exporters and non-exporters. Especially product innovation seems to explain the positive association between exports and productivity for this group of firms. For small non-innovating firms with low and medium productivity levels exporting firms continue to exhibit higher productivity than non-exporting firms.
Keywords: exports; innovation; process innovation; product innovation; productivity
JEL Codes: D21; O31; O32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| firm innovation status (L26) | productivity (O49) |
| product innovation (O35) | productivity (O49) |
| productivity (O49) | export markets (F10) |
| firm innovation status (L26) | export status (F10) |
| small non-innovating firms (L25) | higher productivity when exporting (F10) |
| firm innovation status (L26) | productivity differences between exporters and non-exporters (F14) |
| firm-specific demand variations (D21) | productivity (O49) |