Exporting and Technological Innovation: Evidence from Southeast Asia

Thi Ngoc Thuy Doan; Chia-Hua Chang

Thi Ngoc Thuy Doan College of Business, Southern Taiwan University of Science and Technology, Taiwan http://orcid.org/0000-0001-6196-4274
Chia-Hua Chang College of Business, Southern Taiwan University of Science and Technology, Taiwan http://orcid.org/0000-0002-8584-993X

Abstract

Exporting is imperative for a contemporary business as it enhances firm competitiveness and performance. Previous studies have focused on the link between exporting and innovation. Firms’ innovation is enhanced after entering the export market by absorbing the knowledge of these markets. Nevertheless, there is little evidence in developing economies. In the Southeast Asian context, this relationship has not yet been explored. Thus, this study investigates the role of exports in firm-level technological innovation (product and process innovations) in Southeast Asia. Using a sample of 4,416 manufacturing firms in 2015 and 2016 and a multilevel mixed-effects logistic regression to deal with the hierarchies of the data set, the study finds empirical evidence that involvement in exporting activities can spur corporate technological innovation. The practical implication emphasizes the support of Southeast Asian governments to encourage exporting activities.

Research paper

Keywords: Exporting; Process innovation; Product innovation; Southeast Asia

Reference to this paper should be made as follows: Doan, T. N. T., & Chang, C. H. (2022). Exporting and Technological Innovation: Evidence from Southeast Asia. Journal of Entrepreneurship, Business and Economics, 10(1), 277–293.