Abstract:
We examine the role of innovation on the export market survival of Indian manufacturing firms. To achieve this objective, we source information on 1424 firms from the CMIE-Prowess database over 2001–2018. We find that firms investing in R&D experience a lower probability of exiting from export markets. In addition, multiple sub- sample analyses indicate the significance of R&D for small and medium firms export market survival. The findings are robust to endogeneity concerns.
Authors:
Ketan Reddy (Department of Economics and Public Policy, Indian Institute of Management Raipur, Raipur, India).
Subash Sasidharan (Department of Humanities and Social Sciences, Indian Institute of Technology Madras, Chennai, India).
Read the full article here: Innovative efforts and export market survival: Evidence from an emerging economy