Does innovation cause exports? Evidence from exogenous innovation impulses and obstacles using German micro data

Lachenmaier, Stefan; Wößmann, Ludger

doi:10.1093/oep/gpi043

Cited by 217 publications

(143 citation statements)

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“…Some of the related studies rely on R&D expenditures as an indirect measure of innovations (Hirsch and Bijaoui, 1985;Kumar and Siddharthan, 1994;Braunerhjelm, 1996;Basile, 2001) and a smaller number of studies employs survey data with explicit information on the actual innovations (Wakelin, 1998;Bernard and Jensen, 1999;Roper and Love, 2002;Cassiman and Martínez-Ros, 2004;Lachenmaier and Wößmann, 2006). Overall, these studies point to a strong positive impact of innovations on exports.…”

Section: Empirical Work On the Determinants And Effects Of Innovationmentioning

confidence: 99%

“…Surprisingly, in as much as the aforementioned theoretical models establish an endogenous determination of innovations, and economic theory on innovation and exports addresses their simultaneous determination (Hughes, 1998), empirical micro-econometric work on innovation-driven exports tends to model the selection of firms into innovations as a random (or exogenous) process. Two exceptions in the latter regard are Cassiman and Martínez-Ros (2004) and Lachenmaier and Wößmann (2006). Both studies exploit information from panel data.…”

Section: Empirical Work On the Determinants And Effects Of Innovationmentioning

confidence: 99%

“…Cassiman and Martínez-Ros (2004) focus on innovations as such and treat them as predetermined variables (hence, they use once-lagged instead of contemporaneous innovations in the export regressions). Lachenmaier and Wößmann (2006) apply instrumental-variable procedures to account for the potential endogeneity of innovations. One of their major findings is that innovations are indeed endogenous and their exogenous treatment leads to largely downward-biased estimates of the impact of innovations on firm-level exports.…”

Section: Empirical Work On the Determinants And Effects Of Innovationmentioning

confidence: 99%

“…Basile (2001) looks at the effect of product and process innovations (measured by two different R&D expenditure modes) on exports, but he treats innovations as exogenous. The paper by Lachenmaier and Wößmann (2006) also distinguishes between product and process innovations, but only in one of the specifications in the sensitivity analysis. There, neither the impact of product innovations nor that one of process innovations on exports is significantly different from zero.…”

Section: Empirical Frameworkmentioning

confidence: 99%

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Endogenous product versus process innovation and a firm’s propensity to export

2009

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper provides an empirical analysis of the effects of new product versus process innovations on export propensity at the firm level. Product innovation is a key factor for successful market entry in models of creative destruction and Schumpeterian growth. Process innovation helps securing a firm's market position given the characteristics of its product supply. Both modes of innovation are expected to raise a firm's propensity to export. According to new trade theory, we conjecture that product innovation is relatively more important in that regard. We investigate these hypotheses in a rich survey panel data set with information about new innovations of either type. With a set of indicators regarding innovation motives and impediments and continuous variables at the firm and industry level at hand, we may determine the probability of launching new innovations and their impact on export propensity at the firm level through a double treatment approach. Terms of use: Documents inJEL Code: F1, O3, L1.

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Section: Empirical Work On the Determinants And Effects Of Innovationmentioning

confidence: 99%

Section: Empirical Work On the Determinants And Effects Of Innovationmentioning

confidence: 99%

Section: Empirical Work On the Determinants And Effects Of Innovationmentioning

confidence: 99%

Section: Empirical Frameworkmentioning

confidence: 99%

See 2 more Smart Citations

Endogenous product versus process innovation and a firm’s propensity to export

2009

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“…Other studies have investigated the cyclicality of research and development expenditures and found either pro-cyclical firm behaviour (see Barlevy, 2007), or no effects of demand shocks on R&D investments (see Rafferty and Funk, 2004). A third group of studies has, more specifically, considered the relationship between innovation and export market demand and generally finds a positive linkage (Wakelin, 1998;Sterlacchini, 1999;Bleaney and Wakelin, 2002;Roper and Love, 2002;Lachenmaier and Wobmann, 2006). Blind and Jungmittag (2004), for example, examine the effect of exporting on innovation among 2,019 German service firms and find evidence that being an exporter is strongly correlated with the probability of being both a product and process innovator.…”

Section: Introductionmentioning

confidence: 99%

Openness and Innovation - Home and Export Demand Effects on Manufacturing Innovation: Panel Data Evidence for Ireland and Switzerland

Woerter

Roper

2008

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Abstract:Recent studies in the tradition of Schmookler have re-emphasised the potential role of demand in stimulating innovation. Here, we reconsider the role of 'home' and 'export' market demand in stimulating manufacturing innovation using comparable panel data for two small open economies -Ireland and Switzerland. Our analysis is based on the estimation of reduced form innovation production functions using panel data estimators over the sample period 1994 to 2005. For a range of innovation indicators, however, we find little evidence of any significant market demand effects, with innovation performance instead determined largely by firm-level capability effects and characteristics. In policy and strategy terms this suggests the continued value of measures to improve innovation capability regardless of market demand conditions. In more methodological terms our results suggest the validity of the usual assumption implicit in modelling innovation outputs that supply-side factors predominate.Acknowledgements:

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R&D alliances and SMEs post‐entry internationalization speed: The impact of alliance management capability and co‐innovation ambidexterity

Zahoor

Al‐Tabbaa

Khan

2023

Global Strategy Journal

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Research Summary This study delves into the relationship between alliance management capability (AMC) and the post‐entry internationalization speed of small‐sized and medium‐sized enterprises (SMEs). We develop a novel theoretical framework that illuminates the effect of co‐innovation ambidexterity as a mechanism that unlocks AMC value in speeding up SME internationalization following entry into foreign markets. To validate our framework, we conduct an empirical investigation using a sample of 278 UK‐based manufacturing SMEs. Our findings support the proposition that co‐innovation ambidexterity is a crucial mediating mechanism through which AMC boosts the post‐entry internationalization speed of SMEs. Therefore, this research sheds new light on the critical roles of AMC and co‐innovation ambidexterity during the post‐entry stage, which has far‐reaching implications for the fields of international entrepreneurship and international strategic alliances. Managerial Summary Internationalizing SMEs are increasingly forming alliances with the aim of accessing and leveraging external knowledge to tackle the challenges they typically encounter during post‐entry phase. However, these alliances are difficult to establish and manage, which results in high failure rates. To address this lacuna, we argue that AMC and co‐innovation ambidexterity facilitate the post‐entry internationalization speed of SMEs. Using data from 278 UK‐based manufacturing SMEs, we show that AMC is an important capability that allows SMEs to leverage and harness the knowledge of their alliances for co‐innovation ambidexterity, which, in turn, increases their post‐entry internationalization speed. Together, these findings provide important insights for those SMEs' managers who aim to develop effective strategies for rapid internationalization via strategic alliances.

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Does innovation cause exports? Evidence from exogenous innovation impulses and obstacles using German micro data

Cited by 217 publications

References 40 publications

Endogenous product versus process innovation and a firm’s propensity to export

Endogenous product versus process innovation and a firm’s propensity to export

Openness and Innovation - Home and Export Demand Effects on Manufacturing Innovation: Panel Data Evidence for Ireland and Switzerland

R&D alliances and SMEs post‐entry internationalization speed: The impact of alliance management capability and co‐innovation ambidexterity

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