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Does Innovation Enhance the Export Propensity of Vietnamese Firms?

In: Knowledge Transformation and Innovation in Global Society

Author

Listed:
  • Minh Nguyet Nguyen

    (National Economics University)

  • Thu Van Le

    (National Economics University)

  • Huong Thu Thi Le

    (National Economics University)

Abstract

Although innovation has been acknowledged as an essential driver of export growth, the empirical results on the linkage between innovation and export propensity are mixed. Using a dataset on innovation at the micro level, we are among the first to examine the effect of different innovation types, namely product, process, marketing, and organizational innovation, on the export likelihood of enterprises in the context of a developing country—Vietnam. The result reveals a positive relationship between export propensity and all innovation measures, which is supported by instrumental variable (IV) estimations and simultaneous equation systems. Further analysis on such relationship is also conducted across firm’s types of ownership and technology level for more detailed and thorough understandings. The paper confirms the importance of innovation in improving Vietnam’s exports, carrying significant implications for policymakers in developing countries.

Suggested Citation

  • Minh Nguyet Nguyen & Thu Van Le & Huong Thu Thi Le, 2024. "Does Innovation Enhance the Export Propensity of Vietnamese Firms?," Springer Books, in: Hoa Van Thi Tran & Hiromi Shioji & Huong Lan Thi Le & Takabumi Hayashi (ed.), Knowledge Transformation and Innovation in Global Society, pages 57-84, Springer.
    • Handle: RePEc:spr:sprchp:978-981-99-7301-9_4
    DOI: 10.1007/978-981-99-7301-9_4
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