Innovation, Exporting and Productivity: A Review of the Evidence Base

It is well established that exporting firms are more productive than non-exporters. Innovation plays a key role in enabling firms to have export suitable products and, once firms export and learn from foreign markets, they can further improve their products and services. This review explores the evidence base on the interrelationships between exporting, innovation and productivity.  In terms of productivity the evidence points to strong complementarity between innovation and exporting, with exporting providing a clear pathway for product innovators to become more productive. We identify four key evidence gaps and, based on the existing evidence base, we make three recommendations for innovation and export support measures.  

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