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Innovation and export behaviour at the firm level

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  • Katherine Wakelin

Abstract

This paper considers the role of innovation in determining export behaviour for a sample of UK firms. The sample includes firms which have had a major innovation; based on the SPRU survey of innovations, and are defined as innovating firms. The rest of the sample of made up of non-innovating firms which have not had a major innovation. Export behaviour is defined in a dual way; both as the probability of a firm exporting and the propensity to export of the exporting firms. The former is estimated using a Probit model, and the latter is treated as a truncated estimation. An empirical model of the determinants of export behaviour is estimated; including both firm specific and sector specific characteristics. The determinants are found to vary between innovating and non-innovating firms. Market characteristics appear to have more influence on the export behaviour of non-innovating firms; innovating firms rely more on firm characteristics. The paper concludes that the capacity to innovate changes the performance of the firm with respect to non-innovating firms.

Suggested Citation

  • Katherine Wakelin, 1996. "Innovation and export behaviour at the firm level," National Institute of Economic and Social Research (NIESR) Discussion Papers 94, National Institute of Economic and Social Research.
    • Handle: RePEc:nsr:niesrd:94
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    Cited by:

    1. Kaiser, Ulrich & Müller, Claudia, 1998. "The impact of the introduction of the Euro on firms' expectations concerning export behavior, product innovation and foreign competition - An empirical assessment of the German business-related servic," ZEW Discussion Papers 98-29, ZEW - Leibniz Centre for European Economic Research.
    2. Del Monte, Alfredo & Papagni, Erasmo, 2003. "R&D and the growth of firms: empirical analysis of a panel of Italian firms," Research Policy, Elsevier, vol. 32(6), pages 1003-1014, June.

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