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On the Relationship between Innovation and Export: The Case of Australian SMEs

Author

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  • Alfons Palangkaraya

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; Intellectual Property Research Institute of Australia, The University of Melbourne)

Abstract

This paper investigates the link between innovation and export market participation using Australian small and medium enterprises (SMEs) data. The results show that export and innovation are positively linked. Depending on the industry and the type of innovation (process or product), innovation may lead to export and, to a lesser extent, export may lead to innovation. Firms in the primary sector (agriculture and mining) show the strongest evidence that innovation leads to export. From firms in the services sector, there is indication that only process innovation leads to export. Also, only in this sector, there is evidence that export may lead to (process) innovation.

Suggested Citation

  • Alfons Palangkaraya, 2013. "On the Relationship between Innovation and Export: The Case of Australian SMEs," Melbourne Institute Working Paper Series wp2013n04, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2013n04
    as

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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2013n04.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Innovation; export; small and medium enterprises; propensity score matching;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • 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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