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Imported input varieties and product innovation: Evidence from five developing countries

Bos,Marijke
; 
Vannoorenberghe,Gonzague
Abstract
We examine how access to imported intermediate inputs affects firmā€level product innovation in five developing counties. We combine trade data with survey data on innovation and develop a method to determine whether new inputs were essential for the product innovation. We find evidence that the number of newly imported varieties has a significant impact on product innovations that rely on new inputs and provide suggestive evidence that this effect comes from access to better quality imports. We extend our analysis to assess the consequences of the increase in the number of Chinese exporting firms on product innovation in developing countries.
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Date
2019-05
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Tilburg University Research Output Collection
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SDG 9 - Industry, Innovation, and Infrastructure
Citation
Bos, M & Vannoorenberghe, G 2019, 'Imported input varieties and product innovation: Evidence from five developing countries', Review of International Economics, vol. 27, no. 2, pp. 520-548. https://doi.org/10.1111/roie.12387
URI
https://hdl.handle.net/20.500.14602/71067
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