Skip to main navigation menu Skip to main content Skip to site footer

Vol. 4 No. 4 (2016)
Entrepreneurship in the Global Context

Thematic Articles

Innovations and Export Performance: Firm-level Evidence from Poland

https://doi.org/10.15678/EBER.2016.040402

Published 2016-12-03

  • Andrzej Cieślik
    • ,
  • Jan Jakub Michałek
    • ,
  • Krzysztof Szczygielski

Andrzej Cieślik
University of Warsaw

Jan Jakub Michałek
University of Warsaw

Krzysztof Szczygielski
University of Warsaw

Abstract

Objective: The main objective of this article is to study the empirical relationship between innovations and export performance of Polish firms.

Research Design & Methods: Our analytical framework refers to the most recent strand in the new trade theory literature based on the Melitz (2003) model that stresses the role of firm heterogeneity and the importance of firm productivity in entering export markets. We treat innovations as a key element that can increase the level of productivity and study the significance of both product and process innovations. The empirical implementation of the theoretical framework is based on the probit model and the unique Polish CIS firm-level dataset covering the period 2008-2010.

Findings: Our estimation results indicate that the probability of exporting is positively related to product and process innovations, firm size, the share of university graduates in productive employment and foreign capital participation. The results depend also on the level of technology used in the analysed sector and the relative importance of export market.

Implications & Recommendations: It is necessary to develop an innovation supporting mechanism that would stimulate both product and process innovations in Poland.

Contribution & Value Added: The originality of this work lies in the use of the unique Polish CIS firm level dataset that allows distinguishing between product and process innovations.

Keywords

Export activity, firm heterogeneity, innovations, Poland,

PDF

References

  1. Atkeson, A., & Burstein, A. (2007). Innovation, firm dynamics, and international trade. NBER Working Paper, No. 13326.
  2. Aw, B.Y., Roberts, M.J., & Xu, D.Y. (2009). R&D investment, exporting, and productivity dynamics. NBER Working Paper, No. 14670.
  3. Baily, M.N., & Gersbach, H. (1995). Efficiency in manufacturing and the need for global competition. Brookings Papers on Economic Activity: Microeconomics, 307-358.
  4. Basile, R. (2001). Export behavior of Italian manufacturing firms over the nineties: the role of innovation. Research Policy, 30, 1185-1201.
  5. Becker, S.O.,·& Egger, P.H. (2013). Endogenous product versus process innovation and
  6. a firm’s propensity to export. Empirical Economics, 44, 329-354.
  7. Bernard, A., & Jensen, J.B. (1999). Exceptional export performance: cause, effect, or both? Journal of International Economics, 47, 1-25.
  8. Braunerhjelm, P. (1996). The relation between firm specific intangibles and exports. Economic Letters, 53, 213-219.
  9. Caldera, A. (2010). Innovation and exporting: evidence from Spanish manufacturing firms. Review of World Economy, 146, 657-689.
  10. Cassiman, B., & Martínez-Ros, E. (2007). Innovation and exports: evidence from Spanish manufacturing. Unpublished manuscript, IESE Business School.
  11. Cassiman, B., Golovko, E., & Martínez-Ros, E. (2010). Innovation, exports and produc-tivity. International Journal of Industrial Organization, 28, 372-376.
  12. Cieślik, A., Michałek, J.J., & Michałek, A. (2012). Determinanty działalności eksportowej polskich przedsiębiorstw. Gospodarka narodowa, LXXX/XXI (7-8), 67-84.
  13. Cieślik, A., Michałek, J.J., & Michałek, A. (2013). Export activity in Visegrad-4 countries: Firm level investigation. Ekonomia, 30, 5-24.
  14. Cieślik, A., Michałek, J.J., & Michałek, A. (2014). The influence of firm characteristics and export performance in Central and Eastern Europe: Comparisons of Visegrad Baltic and Caucasus states. Entrepreneurial Business and Economics Review, 2(1), 4-18.
  15. Cieślik, A., Michałek, J.J., Michałek, A., & Mycielski, J. (2015). Determinants of export performance: Comparison of Central European and Baltic firms. Czech Journal of Economics and Finance (Finance a uver), 65(3), 211-229.
  16. Constantini, J.A., & Melitz, M.J. (2008). The dynamics of firm-level adjustment to trade liberalization. In E. Helpman, D. Marin & T. Verdier (Eds.), The organization of firms in a global economy. Cambridge, MA: Harvard University Press.
  17. Damijan, J.P., Kostevc, C., & Polanec, S. (2010). From innovation to exporting or vice versa? World Economy, 33(3), 374-398.
  18. Damijan, J.P., & Kostevc, C. (2006). Learning-by-exporting: Continuous productivity improvements or capacity utilization effects? Evidence from Slovenian firms. Re-view of World Economics, 142(3), 599-614.
  19. De Loecker, J. (2007). Do exports generate higher productivity? Evidence from Slovenia. Journal of International Economics, 73(1), 69-98.
  20. Dollar, D. (1986). Technological innovation, capital mobility, and the product cycle in North-South trade. American Economic Review, 76(1), 177-190.
  21. Ebling, G., & Janz, N. (1999). Export and innovation activities in the German service sector. Empirical evidence at the firm level. ZEW discussion paper, 99-53, Mann-heim: Zentrum für Europäische Wirtschaftsforschung.
  22. Entorf, H., Krader, W., & Pohlmeier, W. (1988). Entscheidungen über Innovation, Be-schäftigung und Außenhandel: Empirische Ergebnisse eines simultanen Probitan-satzes. In H. Kräger (Ed.), Empirische Wirtschaftsforschung (pp. 27-49). Frankfurt: Campus Verlag.
  23. Eurostat (2016). Eurostat indicators on High-tech industry and Knowledge – intensive services Annex 3 – High-tech aggregation by NACE Rev.2. Retrieved on August 10, 2016 from http://ec.europa.eu/eurostat/cache/metadata/Annexes/htec_esms_an3 .pdf
  24. Foellmi, R., & Zweimüller, J. (2006). Mass consumption, exclusion, and unemployment. University of Zurich IEW working paper 296.
  25. Grossman, G.M., & Helpman, E. (1989). Product development and international trade. Journal of Political Economy, 97, 1261-1283.
  26. Grossman, G.M., & Helpman, E. (1990). Comparative advantage and long-run growth. American Economic Review, 80, 796-815.
  27. Grossman, G.M., & Helpman, E. (1991). Innovation and growth in the global economy. Cambridge, MA: MIT Press.
  28. Grossman, G.M., Helpman, E., & Szeidl, A. (2006). Optimal integration strategies for the multinational firm. Journal of International Economics, 70, 216-238.
  29. Hagemejer, J., & Kolasa, M. (2011). Internationalisation and economic performance of enterprises: Evidence from Polish firm‐level Data. World Economy, 34(1), 74-100.
  30. Hirsch, S., & Bijaoui, I. (1985). R&D Intensity and export performance: a micro view. Weltwirtschaftliches Archiv, 121, 138-151.
  31. Hopenhayn, H.A. (1992). Entry, exit, and firm dynamics in long run equilibrium. Econ-ometrica, 60, 1127-1150.
  32. Jensen, R., & Thursby, M. (1987). A decision theoretic model of innovation, technology transfer, and trade. Review of Economic Studies, 54, 631-647.
  33. Jovanovic, B. (1982). Selection and the evolution of industry. Econometrica, 50, 649-670.
  34. Kumar, N., & Siddharthan, N.S. (1994). Technology, firm size and export behavior in developing countries: the case of Indian enterprise. Journal of Development Stud-ies, 32, 288-309.
  35. Lachenmaier, S., & Wößmann, L.W. (2006). Does innovation cause exports? Evidence from exogenous innovation impulses and obstacles using German micro data. Oxford Economic Papers, 58, 317-350.
  36. Lewandowska, M.S., Szymura-Tyc, M., & Gołębiowski, T. (2016). Innovation comple-mentarity, cooperation partners, and new product export: Evidence from Poland. Journal of Business Research, 69(9), 3673-3681.
  37. Martin, S. (1993). Endogenous firm efficiency in a Cournot principal-agent model. Jour-nal of Economic Theory, 59, 445-450.
  38. Melitz, M.J. (2003). The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica, 71, 1695-1725.
  39. Michałek, J.J., & Śledziewska, K. (2003). Analiza handlu międzygałęziowego pomiędzy Polską a Unią Europejską. In J.J. Michałek, W. Siwiński & M. Socha (Eds.), Od libera-lizacji do integracji Polski z Unią Europejską. Mechanizmy i skutki gospodarcze (pp. 43-61). Warszawa: Wydawnictwo Naukowe PWN.
  40. Roper, S., & Love, J.H. (2002). Innovation and export performance: evidence from the UK and German manufacturing plants. Research Policy, 31, 1087-1102.
  41. Schlegelmilch, B.B., & Crook, J.N. (1988). Firm-level determinants of export intensity. Managerial Decision Economics, 9, 291-300.
  42. Segerstrom, P.S., Anant, T.C.A., & Dinopoulos, E. (1990). A Schumpeterian model of the product life cycle. American Economic Review, 80, 1077-1091.
  43. Spencer, B.J., & Brander, J.A. (1983). International R&D rivalry and industrial strategy. Review of Economic Studies, 50(4), 707-722.
  44. Tybout, J.R. (2003). Plant- and Firm-Level Evidence on “New Trade Theories”. In E.K. Choi & J. Harrigan (Eds.), Handbook of International Trade (Chapter 13). Oxford: Basil Blackwell.
  45. Van Beveren, I., & Vandenbussche, H. (2010). Product and process innovation and firms' decision to export. Journal of Economic Policy Reform, 13(1), 3-24.
  46. Wagner, J. (1996). Export performance, human capital, and product innovation in Germany: a micro view. Jahrbuch für Wirtschaftswissenschaften, 47, 40-45.
  47. Wagner, J. (2007). Exports and Productivity: A Survey of the Evidence from Firm-level Data. The World Economy, 30(1), 60-82.
  48. Wagner, J. (2012). A Comparison of Alternative Indicators for the Risk of Nonresponse Bias. Public Opinion Quarterly, 76(3), 555-575.doi: 10.1093/poq/nfs032
  49. Wakelin, K. (1997). Trade and Innovation. Theory and Evidence. Cheltenham: Edward Elgar.
  50. Wakelin, K. (1998). Innovation and export behaviour at the firm level. Research Policy, 26(7-8), 829-841.

Downloads

Download data is not yet available.

Similar Articles

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 > >> 

You may also start an advanced similarity search for this article.