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Learning from Trade through Innovation

Year: 2014

Type: article

Abstract: This paper explores the idea that firms learn from trade by introducing either new products or processes influenced by their trade links with foreign markets. By exploring microdata for Spain, including data on innovation and trade, we find a robust relationship between imports, exports and innovation. The results suggest that firms learn primarily from import links, which enable them to innovate and to ‘dress up’ for starting to export. This sequencing between trade and innovation, however, is shown to be more pronounced for small firms only and technologically advanced firms.

Source: Oxford Bulletin of Economics and Statistics

DOI: 10.1111/obes.12071

Authors: Jože P. Damijan, Črt Kostevc

Institutions: University of Ljubljana, Institute for Economic Research, KU Leuven

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: green

Funders: European Commission, KU Leuven, Sixth Framework Programme