INNOVATION AND EXPORT BEHAVIOR AT THE FIRM LEVEL

This paper considers the role of innovation in determining export beha viour for a sample of UK firms including both innovating and non-innov ating firms. Export behaviour is defined both as the probability of a firm exporting and the propensity to export of the exporting firms. An empirical model of the determinants of export behaviour is estimated, and the determinants are found to vary between innovating and non-inn ovating firms. Non-innovative firms are found to be more likely to exp ort than innovative firms of the same size. However, the number of pas t innovations has a positive impact on the probability of an innovativ e firm exporting. The paper concludes that the capacity to innovate ch anges the behaviour of the firm relative to non-innovating firms. (C) 1998 Elsevier Science B.V. All rights reserved.