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The Joint Impact of Innovation and Knowledge Spillovers on Productivity and Growth for Exporting Firms
Author(s) -
Lööf Hans,
Nabavi Pardis
Publication year - 2015
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12214
Subject(s) - productivity , externality , total factor productivity , economics , industrial organization , economic geography , econometric analysis , business , international trade , econometrics , microeconomics , macroeconomics
Abstract 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.