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‘Learning to Export’ and ‘Learning By Exporting’: Revisiting the Relationship Between Innovation and Exports in African Firms

Year: 2025

Type: article

Abstract: ABSTRACT This article examines the relationship between innovation and export performance for African firms. We estimate a censored Tobit IV simultaneous model with selection, using a cross‐sectional data set from the World Bank's Enterprise Surveys for 28 African economies. The results show a two‐way positive relationship between innovation and export performance in African firms: innovation is important for both the ability to export (export propensity) and for export intensity, while exporting also increases the likelihood of innovating. These effects are driven mainly by direct exports and apply to both product and process innovations. The positive two‐way relationship is strengthened through two key mechanisms: a higher share of foreign ownership in firms, and firms having an internationally recognised quality certification. We argue that these results point to a two‐way relationship in which innovation enables firms to ‘learn to export’, while firms also ‘learn by exporting’. We discuss the implications of these findings for African firms and policymakers.

Source: African Development Review

DOI: 10.1111/1467-8268.70001

Authors: Elvis Korku Avenyo, Fiona Tregenna

Institution: University of Johannesburg

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: hybrid

Estimated APC paid: $3,700