DP6411 | Innovation and the Export-productivity Link

Publication Date

03/08/2007

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Abstract

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 important 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 the positive association between exports and productivity for this group of firms. For small non-innovating firms with low and medium productivity levels exporting firms continue to exhibit higher productivity than non-exporting firms.