Product innovation, process innovation and export propensity: persistence, complementarities and feedback effects in Spanish firms

Aylon, Sara and Radicic, Dragana (2019) Product innovation, process innovation and export propensity: persistence, complementarities and feedback effects in Spanish firms. Applied Economics . ISSN 0003-6846

Full content URL: https://doi.org/10.1080/00036846.2019.1584376

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Product innovation, process innovation and export propensity: persistence, complementarities and feedback effects in Spanish firms

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Product innovation, process innovation and export propensity: persistence, complementarities and feedback effects in Spanish firms
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Item Type:Article
Item Status:Live Archive

Abstract

Drawing on a longitudinal data of Spanish manufacturing firms, this study explores the persistence of technological innovation and exports, their potential complementary relations and feedback effects. Empirical results suggest the presence of both true and spurious state dependence in all three activities. True state dependence in technical innovation and exports implies intertemporal spillovers relevant to the evaluation of innovation and export policy measures. However, given that results also suggest spurious state dependence, firm-specific characteristics should be taken into account in promoting technological innovations and exports. In addition, we find a strong complementarity between product and process innovation both through a contemporaneous effect and via unobserved firm characteristics. However, concerning complementarity between innovation and exports, results suggests complementarity only through contemporaneous effects. Finally, we find no support for the causal link from past product and process innovations to current export activities.

Keywords:product innovation; process innovation; exports; persistence; complementarities
Subjects:L Social studies > L110 Applied Economics
Divisions:Lincoln International Business School
ID Code:35061
Deposited On:05 Mar 2019 17:02

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