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Spillovers to foreign market participants: assessing the impact of export strategies on innovative productivityNew York University, USA Although a substantial body of research has investigated spillovers to FDI, we know very little about whether, and how, firms stand to benefit from spillovers without making such crossborder investments. In this study I investigate this issue by examining the ex-post innovative benefits that accrue to exporting firms. I argue that exporters access diverse knowledge inputs not available in the domestic market.This knowledge spills back to the focal firm and results in increased innovation. I explore how exporters derive such knowledge-based advantages by examining the relationship between export strategies and innovative productivity. Specifically, I contend that firms that export to developed countries will experience increased innovative productivity. Similarly, firms that reach the foreign market directly rather than relying on export brokers should innovate more, as they maintain closer ties with their information conduits.The empirical analysis is conducted using a stratified representative sample of Spanish manufacturing firms from 1990 to 1997. The dependent variable (innovation) is measured using several widely employed proxies including patent counts and innovation counts. I find that export strategies influence innovation in complex ways. I discuss the relevance of these findings for research in international business, strategy, and innovation.
Key Words: exporting • innovation • international trade • learning from exporting • spillovers
Strategic Organization, Vol. 4, No. 2,
135-164 (2006) |
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