Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/74964
Authors: 
Van Beveren, Ilke
Vandenbussche, Hylke
Year of Publication: 
2009
Series/Report no.: 
LICOS Discussion Paper 247
Abstract: 
Using data from the Community Innovation Survey for Belgium in two consecutive periods, this paper explores the relationship between firm-level innovation activities and the propensity to start exporting. To measure innovation, we include indicators of both innovative effort (R&D activities) as well as innovative output (product and process innovation). Our results suggest that the combination of product and process innovation, rather than either of the two in isolation, increases a firm's probability to enter the export market. After controlling for potential endogeneity of the innovation activities, only firms with a sufficiently high probability to start exporting engage in product and process innovation prior to their entry on the export market, pointing to the importance of self-selection into innovation.
Subjects: 
Exports
Product innovation
Process innovation
Self-selection
Firm heterogeneity
JEL: 
D24
F14
L25
O31
O33
Document Type: 
Working Paper

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