The Joint Impact of Innovation and Knowledge Spillovers on Productivity and Growth for Exporting Firms. (6th September 2014)

• Record Type: Journal Article
• Authors: Lööf, Hans; Nabavi, Pardis
• Is Part Of: World economy. Volume 38:Number 4(2015:Apr.)
• Page Start: 730
• Page End: 750
• Publication Date: 2014-09-06
• Subjects: International economic relations -- Periodicals; 330
• DOI: 10.1111/twec.12214
• Languages: English
• ISSNs: 0378-5920

Abstract

<abstract abstract-type="main" id="twec12214-abs-0001"> <title>Abstract</title> <p>This paper provides new insights regarding the role of innovation and localisation on the levels and growth of total factor productivity among exporting firms. For that purpose, we establish a dynamic model using data collected from nearly 10, 000 Swedish exporting firms over a 12‐year period. Different innovation proxies are used, and we distinguish between persistent and non‐persistent innovators, while knowledge from outside the firm is measured by a newly developed methodology with detailed spatial resolution. The econometric evidence shows two distinct results. First, persistent innovators benefit significantly more than other exporters from access to a rich spectrum of nearby knowledge. Second, the level of productivity among non‐innovative exporters and exporters that are only temporary engaged in innovation is positively affected by externalities in the most knowledge‐intense local milieus.</p> </abstract>