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Dissecting the impact of innovation on exporting in Turkey

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  • Alessia Lo Turco
  • Daniela Maggioni

Abstract

Does innovating promote firms' export probability? By separately modelling - theoretically as well as empirically - the impact of process and product innovation, we show that the joint adoption of both innovation strategies fosters Turkish firms' first time export entry in rich destination markets. Nevertheless, innovation strengthens firms' export probability. As predicted by our theoretical sketch, product innovation matters in particular for exporting to developing economies, while process innovation reinforces the role of product innovation for exporting to richer markets.

Suggested Citation

  • Alessia Lo Turco & Daniela Maggioni, 2015. "Dissecting the impact of innovation on exporting in Turkey," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(4), pages 309-338, June.
    • Handle: RePEc:taf:ecinnt:v:24:y:2015:i:4:p:309-338
    DOI: 10.1080/10438599.2014.946311
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    1. Alessia Lo Turco & Daniela Maggioni, 2015. "Imports, Exports and the Firm Product Scope: Evidence From Turkey," The World Economy, Wiley Blackwell, vol. 38(6), pages 984-1005, June.
    2. Rossi, Stefania Patrizia Sonia & Bonanno, Graziella & Giansoldati, Marco & Gregori, Tullio, 2021. "Export starters and exiters: Do innovation and finance matter?," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 280-297.
    3. Alguacil Marí, María Teresa & Lo Turco, Alessia & Martínez-Zarzoso, Inmaculada, 2020. "What is so special about robots and trade?," University of Göttingen Working Papers in Economics 410, University of Goettingen, Department of Economics.
    4. Wu, Lichao & Wei, Yingqi & Wang, Chengang, 2021. "Disentangling the effects of business groups in the innovation-export relationship," Research Policy, Elsevier, vol. 50(1).
    5. Cristiano Antonelli & Christophe Feder, 2021. "The Schumpeterian creative response: export and innovation: evidence for OECD countries 1995–2015," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 803-821, October.
    6. Alguacil, Maite & Lo Turco, Alessia & Martínez-Zarzoso, Inmaculada, 2022. "Robot adoption and export performance: Firm-level evidence from Spain," Economic Modelling, Elsevier, vol. 114(C).
    7. 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).

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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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