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Innovation Forms and Firm Export Performance: Empirical Evidence from ECA Countries

Author

Listed:
  • Andrzej Cieślik

    (University of Warsaw, Faculty of Economic Sciences, Poland)

  • Jan Jakub Michałek

    (University of Warsaw, Faculty of Economic Sciences, Poland)

Abstract
Objective: The main objective of this paper is to verify empirically the relationship between various forms of innovation and export performance of firms from European and Central Asian (ECA) countries. Research Design & Methods: In our empirical approach we refer to the self-selection hypothesis derived from the Melitz (2003) model which proposed the existence of a positive relationship between firm productivity and the probability of exporting. We argue that innovation activities should be regarded as a key element that can increase the level of firm productivity. We focus our analysis on four forms of innovation activities: product, process, marketing, organizational and managerial innovation. The empirical implementation of our analytical framework is based on the probit model, applied to the fifth edition of the BEEPS firm level dataset covering 2011-2014. Findings: Our empirical results indicate that the probability of exporting is positively related to both product and process innovations. The marketing and managerial innovations do not seem to affect positively export performance of firms from ECA countries. Implications & Recommendations: It is recommended to develop innovation supporting mechanisms that would target both product and process innovations rather than other forms of innovation in the ECA countries. Contribution & Value Added: The originality of this work lies in the use of the multi-country firm level dataset that allows distinguishing between various forms of innovations in the ECA countries.

Suggested Citation

  • Andrzej Cieślik & Jan Jakub Michałek, 2017. "Innovation Forms and Firm Export Performance: Empirical Evidence from ECA Countries," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(2), pages 85-99.
    • Handle: RePEc:krk:eberjl:v:5:y:2017:i:2:p:85-99
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    References listed on IDEAS

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    More about this item

    Keywords

    ECA countries; firm export performance; innovation forms; probit model;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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