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IESE Research Papers,
IESE Business School

No D/688: Innovation and the export-productivity link

Bruno Cassiman () and Elena Golovko
Additional contact information
Bruno Cassiman: IESE Business School, Postal: Research Division, Av Pearson 21, 08034 Barcelona, SPAIN
Elena Golovko: IESE Business School, Postal: Research Division, Av Pearson 21, 08034 Barcelona, SPAIN

Abstract: In this paper, we explore the relationship between innovation activity, productivity, and exports, using a panel of Spanish manufacturing firms for 1990-1998. Our results -based on non-parametric tests- suggest that firm innovation status is critical in explaining the positive export-productivity association documented in prior research. For the sample of small innovating firms, we find no significant differences in productivity levels between exporters and non-exporters. Especially product innovation seems to explain this positive association between exports and productivity. For small non-innovating firms with the low and medium productivity levels, however, exporting firms continue to exhibit higher productivity than non-exporting firms.

Keywords: Innovation; productivity; exports; industry dynamics

28 pages, April 5, 2007

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