Do exports affect innovation? the case of Spain

Abstract

In this study the relationship between Spanish companies exporting in international markets and innovation (in the areas of product, process, organization and marketing) is analyzed. In order to do this, we use a nonlinear probability model, namely the probit model with fixed panel data from the PITEC database. For analysis we use the assumption that the companies that have entered the international market in previous years are shown to be more likely to export than those who are not present in international markets. The results confirm this hypothesis, showing the fact that export increases the likelihood of innovation of Spanish companies in different such areas, product innovation being the one which shows higher incidence.