Innovations and their complementarities: which types of innovations drive export performance?

Abstract

ABSTRACT This paper analyses the impacts of different innovation types and personnel training on manufacturing firms’ export performance in Russia. We use Business Environment and Enterprise Performance Survey data and modified Crépon-Duguet-Mairesse (CDM) model, linking firms’ R&D, innovation (product, process, organisational, and marketing), and export share in revenue to fill the research gap by connecting innovation with export and addressing different innovation types. Estimation reveals that combination of organisational innovations with other innovations increases return on R&D and export; firms performing R&D are more sensitive to taxes and difficulties in receiving licences and permits, while cooperation and training facilitate process, marketing, and organisational innovations, and all innovation types positively affect firms’ export. Therefore, on firm level, personnel training and combining different innovation types will enhance export. At the regional or national level, we offer approaches for improving policy to support developing human capital, providing better business environment, and promoting fair competition.