Innovation, exports and technical efficiency in Spain

Diaz-Mayans, M.Angeles and Sánchez, Rosario/R (2014): Innovation, exports and technical efficiency in Spain.

Abstract

This paper analyses the relationship between exports, innovative activities and size and their effect over firms’ technical efficiency and then over their productivity. The analysis takes, also, into account other variables that could affect productivity as industrial sector, or firms’ financial conditions. We use a micro panel data set of Spanish manufacturing firms, during the period 2004–2009, to simultaneously estimate a stochastic frontier production function and the inefficiency determinants. The data source is published in the Spanish Industrial Survey on Business Strategies (Encuesta sobre Estrategias Empresariales, ESEE), collected by Fundación SEPI. Our results show that exporting firms are more efficient than non-exporting firms; and that small and medium-sized firms’ tent to be more efficient when they focus on international markets.

• Item Type: MPRA Paper
• Language: English
• Keywords: exports, firms, technical efficiency, productivity, innovative activities, R&D expenditures
• Subjects: F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L25 - Firm Performance: Size, Diversification, and Scope; L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General

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