Innovation, productivity, and export: Evidence from SMEs in Lower Normandy, France

Movahedi, Mohammad and Gaussens, Olivier (2011): Innovation, productivity, and export: Evidence from SMEs in Lower Normandy, France. Forthcoming in:

Abstract

This paper presents an analysis of the crucial relationship between innovation, productivity, and export in SMEs. The primary aims of this study are 1) to evaluate the role of innovation in the premium export; and 2) to test the hypothesis of firm conscious self-selection on willing to export. To this end, our database of SMEs, obtained from the survey conducted in the IDEIS project, provides highly pertinent information on innovation and export areas. We first evaluate apparent premium of exportation and that of innovation. In addition, we demonstrate the effectiveness of the export premium for high exportation firms that implement process and organization innovations. Finally, we analyse the effect of conscious self-selection from the export process that transforms an intention to export into a setting in capacity to export in short term. Conscious selfselection on willing to export is revealed by simultaneously endogeneizing productivity and innovation output based on recursive non-linear model.

• Item Type: MPRA Paper
• Language: English
• Keywords: Export process; Productivity; Export premium; Innovation premium
• Subjects: D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C14 - Semiparametric and Nonparametric Methods: General; F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C35 - Discrete Regression and Qualitative Choice Models ; Discrete Regressors ; Proportions; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives

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