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

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  • Sara Ayllón
  • Dragana Radicic

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.

Suggested Citation

  • Sara Ayllón & Dragana Radicic, 2019. "Product innovation, process innovation and export propensity: persistence, complementarities and feedback effects in Spanish firms," Applied Economics, Taylor & Francis Journals, vol. 51(33), pages 3650-3664, July.
    • Handle: RePEc:taf:applec:v:51:y:2019:i:33:p:3650-3664
    DOI: 10.1080/00036846.2019.1584376
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    Cited by:

    1. Martínez-Alonso, Rubén & Martínez-Romero, María J. & Rojo-Ramírez, Alfonso A. & Lazzarotti, Valentina & Sciascia, Salvatore, 2023. "Process innovation in family firms: Family involvement in management, R&D collaboration with suppliers, and technology protection," Journal of Business Research, Elsevier, vol. 157(C).
    2. Lu Qiu & Die Hu & Yu Wang, 2020. "How do firms achieve sustainability through green innovation under external pressures of environmental regulation and market turbulence?," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2695-2714, September.
    3. Die Hu & Lu Qiu & Maoyan She & Yu Wang, 2021. "Sustaining the sustainable development: How do firms turn government green subsidies into financial performance through green innovation?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2271-2292, July.
    4. Juan Jesus Arenas & Juan Erasmo Gómez & Efraín Ortiz & Freddy Paz & Carlos Parra, 2020. "Elements of the Persistence in Innovation: Systematic Literature Review," Administrative Sciences, MDPI, vol. 10(4), pages 1-14, October.
    5. Dong, Guowei & Kokko, Ari & Zhou, Haoyong, 2022. "Innovation and export performance of emerging market enterprises: The roles of state and foreign ownership in China," International Business Review, Elsevier, vol. 31(6).
    6. Fan Zhang & Susu Cheng, 2021. "Behavioral choices in a dynamic duopoly with process innovation and sticky price: Myopia versus farsightedness," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(3), pages 662-674, April.
    7. Wu, Lichao & Wei, Yingqi & Wang, Chengang, 2021. "Disentangling the effects of business groups in the innovation-export relationship," Research Policy, Elsevier, vol. 50(1).
    8. Hervas-Oliver, Jose-Luis & Parrilli, Mario Davide & Sempere-Ripoll, Francisca, 2021. "SME modes of innovation in European catching-up countries: The impact of STI and DUI drivers on technological innovation," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    9. Tea Petrin & Dragana Radicic, 2023. "Instrument policy mix and firm size: is there complementarity between R&D subsidies and R&D tax credits?," The Journal of Technology Transfer, Springer, vol. 48(1), pages 181-215, February.
    10. Dimakopoulou, A.G. & Gkypali, A. & Tsekouras, K., 2024. "Technological and non-technological innovation synergies under the lens of absorptive capacity efficiency," Journal of Business Research, Elsevier, vol. 176(C).
    11. Mercè Sala-Ríos & Mariona Farré-Perdiguer, 2021. "Export behaviour and innovation: a challenge to be met by cooperatives," Economics Bulletin, AccessEcon, vol. 41(3), pages 1849-1859.
    12. Juliao-Rossi, Jorge & Forero-Pineda, Clemente & Losada-Otalora, Mauricio & Peña-García, Nathalie, 2020. "Trajectories of innovation: A new approach to studying innovation performance," Journal of Business Research, Elsevier, vol. 115(C), pages 322-333.
    13. Hua Cheng & Yinhong Yu & Shiyu Zhang, 2024. "Subsidies, green innovation, and the sustainable performance: evidence from heavy-polluting enterprises in China," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 14(1), pages 102-116, March.
    14. Muñoz, Camila & Galvez, Daniel & Enjolras, Manon & Camargo, Mauricio & Alfaro, Miguel, 2022. "Relationship between innovation and exports in enterprises: A support tool for synergistic improvement plans," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    15. Josep Tomàs-Porres & Agustí Segarra-Blasco & Mercedes Teruel, 2023. "Export and variability in the innovative status," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(2), pages 257-279, June.
    16. Mercè Sala-Ríos & Mariona Farré-Perdiguer & Teresa Torres-Solé, 2020. "Exporting and Firms’ Performance—What about Cooperatives? Evidence from Spain," Sustainability, MDPI, vol. 12(20), pages 1-22, October.
    17. Greco, Marco & Germani, Francesca & Grimaldi, Michele & Radicic, Dragana, 2022. "Policy mix or policy mess? Effects of cross-instrumental policy mix on eco-innovation in German firms," Technovation, Elsevier, vol. 117(C).
    18. Wu, Lichao & Wei, Yingqi & Wang, Chengang & McDonald, Frank & Han, Xia, 2022. "The importance of institutional and financial resources for export performance associated with technological innovation," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    19. Rammer, Christian, 2023. "Measuring process innovation output in firms: Cost reduction versus quality improvement," Technovation, Elsevier, vol. 124(C).

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