Export performance, innovation, and sectoral efficiency: a multilevel model for Argentinian manufacturing firms

Abstract

This paper assess how innovation is associated with the export performance of manufacturing firms across sectors categorized by their Ricardian, Keynesian, and Schumpeterian efficiencies (Dosi, G. (1988), ‘Institutions and markets in a dynamic world,’ The Manchester School, 56(2), 119–146). Utilizing data from 3691 Argentinian manufacturing firms over the period of 2010–2012, we employ multilevel models for estimation. Our findings indicate that innovation is positively associated with export performance across the entire economy, but this association varies depending on the sector. These results support the adoption of a vertical innovation policy, directing efforts toward the most promising sectors, given the limitations of market information regarding opportunities for technical change. Furthermore, we observe significant variations in the association of innovation and export performance even within sectors sharing the same efficiency. This specific finding highlights the need for improved methodologies to identify sectoral efficiencies or a more appropriate sectoral classification.