Does Innovation Cause Exports? Evidence from Exogenous Innovation Impulses and Obstacles Using German Micro Data

Lachenmaier, Stefan; Woessmann, Ludger

doi:10.2139/ssrn.540982

Cited by 23 publications

(23 citation statements)

References 33 publications

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“…Based on these ideas, thus, a number of empirical studies which have found a positive association between innovation indicators, like R&D and patents and the international expansion of firms, have been interpreted in support of the general predictions of these models that innovation is a key driving force of firms' international expansion, both through exports and FDI (Cassiman and Martinez-Ros, 2007; Cantwell et al. , 2010; Becker and Egger, 2013; Wakelin, 1998; Caldera, 2010; Lachenmaier and Wobmann, 2006).…”

Section: Research Background: Theories and Contextmentioning

confidence: 81%

Growing from the South in the seed market: Grupo Don Mario

Marín

Stubrin

Roitbarg

2022

JADEE

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PurposeThe authors aim to draw lessons for research and policy from an exception(nal) case of a firm's international expansion in the seed market: Grupo Don Mario, a company originally from Argentina that supplies 20% of the soybean varieties used in the world. The authors describe the processes of expansion of the company, identify key features of its internationalisation, marketing and technological strategy and capabilities, and discuss implications for research and policy and questions for future research.Design/methodology/approachThis is a case study. The paper uses quantitative and qualitative information collected from existing datasets and documents and new information from open ended interviews. This study method is exploratory.FindingsFirst, new entrants from emerging economies should and can adopt an unique technological and marketing approach that distinguish them from incumbents to be able to overcome entry barriers in global concentrated markets. Second, technological capacities need to be complemented with regulatory and political to succeed in highly dynamic, uncertain and regulated sectors like seeds.Research limitations/implicationsPolicies oriented to support business from emerging countries in highly dynamic sectors need to consider technological alternatives.Originality/valueGrupo Don Mario is a case of great interest since it expanded in a period in which the global seed market concentrated massively through an unprecedented process of mergers and acquisitions, which involved the disappearance of hundreds of independent seed companies.

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Section: Research Background: Theories and Contextmentioning

confidence: 81%

Growing from the South in the seed market: Grupo Don Mario

Marín

Stubrin

Roitbarg

2022

JADEE

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“…In this case, innovation (associated with productivity) precedes exports. Several studies show positive empirical evidence in this line, especially for developed economies (Caldera, 2010;Ganotakis and Love, 2011;Hauser et al, 2013;Lachenmaier and Wößmann, 2006).…”

Section: Theoretical Backgroundmentioning

confidence: 97%

“…Most studies addressing this issue refer to firm level data from the manufacturing sector (Lachenmaier and Wößmann, 2006; Pla-Barber and Alegre, 2007) of developed countries or from specific industries (Love and Ganotakis, 2013). Empirical studies for developing economies are not abundant, particularly for Latin America (Bustos, 2011; Crespi et al , 2014; Estrada et al , 2006; Fernandes and Isgut, 2005, 2015; Martínez-Zarzoso et al , 2018; Manotas and González-Perez, 2020).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Innovation and exports: different markets, different outcomes

Barrère

Jung

Karsaclian

2021

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Purpose The purpose of this paper is to identify different outcomes in the relation innovation–exports for a firm located in a developing country, depending upon the destination market of its exports (i.e. a developed or a developing economy). Design/methodology/approach The specification strategy is a bivariate probit regression model applied to 640 Uruguayan manufacturing firms. Two simultaneous equations are used to estimate the probability of being an exporting or innovating firm. For both equations, the firm’s innovative activity and export status in the past are introduced as explanatory variables to solve endogeneity issues. Findings When firms located in a developing economy export to another developing country, the authors find that innovation precedes exports, in line with what they would expect according to theory. When the export market is a developed economy, firms are not able to cope with both innovation and export strategies simultaneously, whether innovating to access export markets or transforming knowledge from exports into innovation. Research limitations/implications Causality could not be found and endogeneity problems were not solved. The data are limited to a sample of Uruguayan manufacturing firms during six years between 2010 and 2015, and authors do not know when did the firms began to export either to a developed or a developing economy. Furthermore, the database indicates if a developed economy is between the three main export markets of the firm or not, but authors do not know what kind of products (i.e. their technological level) are exported by the firm to that destination. Originality/value Although the link between innovation and exports is an important topic for firms and policymakers, the main bulk of empirical studies has ignored the role of destination markets. This study attempts to fill this gap contributing to a better understanding of the differences in the relation between innovation and exports (i.e. its sequence), when the destination market is a developed or a developing economy.

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“…However, if the theoretical background underlying self‐selection mechanisms (Costantini & Melitz, 2009; Melitz, 2003) has been strengthened by the empirical literature (Aw et al, 2000, 2011; Helpman et al, 2004), within which it has been widely documented that firms introducing product or process innovations are ex‐post more likely to export (see, among others, Altomonte et al, 2013; Basile, 2001; Becker & Egger, 2013; Cassiman et al, 2010; Cassiman & Golovko, 2011; Lachenmaier & Wößmann, 2006), the ‘learning’ hypothesis has gained less empirical evidence in spite of a solid theoretical background in equilibrium frameworks (Grossman & Helpman, 1991; Howitt & Aghion, 1998). Besides, within this body of empirical literature the focus has been only on the firms’ export activities, studying their impact on product innovation (Fafchamps et al, 2008; Salomon & Shaver, 2005), process innovation (Damijan et al, 2010), both types of innovation (Bratti & Felice, 2012; Bustos, 2011; Lileeva & Trefler, 2010) or patent activities (Accetturo et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

International activities and innovation: Evidence from Italy with a special regressor approach

Iandolo

Ferragina

2021

World Economy

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By using panel data on Italian manufacturing firms, this paper contributes to the literature on the nexus between firms' internationalisation and innovation performance, taking into account the impact of different internationalisation strategies (with a focus on exports, foreign direct investments and outsourcing) on firms' product and process innovation. Being robust to the implementation of different and complementary methodologies (impact evaluation analysis, multivariate probit and a special regressor approach to instrumental variables), our results suggest that accessing foreign markets through the different strategies considered may ensure different returns in terms of both types of innovation.We find evidence in support of the learning-by-exporting literature since exporting shows positive effects on the probability of carrying out both product and process innovation. Moreover, while investing abroad enhances product innovation, suggesting a more market-seeking oriented strategy (i.e. rather than resource-seeking), on the contrary, outsourcing raises the probability of introducing process innovation. Our results may prompt further reflections on public policies and on incentives for supporting domestic firms' internationalisation.

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Does Innovation Cause Exports? Evidence from Exogenous Innovation Impulses and Obstacles Using German Micro Data

Cited by 23 publications

References 33 publications

Growing from the South in the seed market: Grupo Don Mario

Growing from the South in the seed market: Grupo Don Mario

Innovation and exports: different markets, different outcomes

International activities and innovation: Evidence from Italy with a special regressor approach

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