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Exporting status and success in innovation: evidence from CIS micro data for EU countries

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  • Jože Damijan
  • Črt Kostevc
  • Matija Rojec

Abstract

Using a large sample of micro data from four waves of Community Innovation Survey for EU member states, we investigate the relationship between firms’ export status and different sorts of innovation activities. We find systematically positive relationship between the two, whereby the strongest correlation is found in case of product innovation and the weakest in case of organizational innovations. While aggregate data show that innovation success is increasing in firm size, we find that exporting has the strongest effect on innovation in the medium-sized firms. We also explore cross-country differences in the impact of export status on innovation. Countries with a higher share of exports in GDP and greater share of spending on research and development generally display a stronger correlation between exporting status and innovation.

Suggested Citation

  • Jože Damijan & Črt Kostevc & Matija Rojec, 2017. "Exporting status and success in innovation: evidence from CIS micro data for EU countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(5), pages 585-611, July.
    • Handle: RePEc:taf:jitecd:v:26:y:2017:i:5:p:585-611
    DOI: 10.1080/09638199.2016.1271819
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    References listed on IDEAS

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    1. Hernandez, Pedro J., 2013. "A Note on the Link between Firm Size and Exports," MPRA Paper 51576, University Library of Munich, Germany.
    2. Rachel Bocquet & Patrick Musso, 2010. "Product Innovation and Export Performance," Post-Print halshs-00721783, HAL.
    3. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    4. G. M. Grossman & K. Rogoff (ed.), 1995. "Handbook of International Economics," Handbook of International Economics, Elsevier, edition 1, volume 3, number 3.
    5. Hernández, Pedro J., 2013. "A note on the link between firm size and exports," UMUFAE Economics Working Papers 37132, DIGITUM. Universidad de Murcia.
    6. Katharine Wakelin, 1997. "trade and innovation," Books, Edward Elgar Publishing, number 1342.
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    Cited by:

    1. Yueling Cai & Gongliang Wu & Dingsheng Zhang, 2020. "Does Export Trade Promote Firm Innovation?," Annals of Economics and Finance, Society for AEF, vol. 21(2), pages 483-506, November.
    2. Radka MacGregor Pelikánová, 2019. "R&D Expenditure and Innovation in the EU and Selected Member States," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 15(1), pages 13-34.
    3. Srhoj, Stjepan & Walde, Janette, 2020. "Getting ready for EU Single Market: The effect of export-oriented grant schemes on firm performance," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 279-293.
    4. Florin G Maican & Matilda Orth & Mark J Roberts & Van Anh Vuong, 2023. "The Dynamic Impact of Exporting on Firm R&D Investment," Journal of the European Economic Association, European Economic Association, vol. 21(4), pages 1318-1362.
    5. Peters, Bettina & Roberts, Mark J. & Vuong, Van Anh, 2022. "Firm R&D investment and export market exposure," Research Policy, Elsevier, vol. 51(10).
    6. Paweł Gajewski & Grzegorz Tchorek, 2017. "What drives export performance of firms in Eastern and Western Poland?," European Planning Studies, Taylor & Francis Journals, vol. 25(12), pages 2250-2271, December.
    7. Dung Nguyen‐Van & Chia‐Hua Chang, 2021. "Internationalization and product innovation in ASEAN: The moderating role of organizational innovation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 437-462, March.
    8. Bongsuk Sung & Cui Wen, 2018. "Causal Dynamic Relationships between Political–Economic Factors and Export Performance in the Renewable Energy Technologies Market," Energies, MDPI, vol. 11(4), pages 1-18, April.
    9. Wen, Jun & Wang, Siqin & Yang, Xiuyun & Zhou, Xiaozhou, 2023. "Impacts of epidemics on innovation: An empirical analysis," Technovation, Elsevier, vol. 119(C).
    10. Idris, Bochra & Saridakis, George & Khan, Zaheer, 2022. "The Effect of Outward and Inward Internationalisation on Different Types of Innovation: Evidence from UK SMEs," Journal of International Management, Elsevier, vol. 28(2).

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