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

Research output: Contribution to journalArticleScientificpeer-review

Abstract

We examine how access to imported intermediate inputs affects firm‐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.
Original languageEnglish
Pages (from-to)520-548
JournalReview of International Economics
Volume27
Issue number2
DOIs
Publication statusPublished - May 2019

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