Do Technological Innovations and Exports Affect the Size and Productivity of Manufacturing Firms? Evidence for Brazil

Abstract

This paper investigates whether technological innovation and exports affect the size and productivity of manufacturing firms in Brazil. In order to do so, we employ a new dataset and try to control for self-selection, a problem that is particularly important for the issue under examination. Regression analyses show a positive relation among innovation, exports, and size and productivity, while causality exercises show that innovation and exports imply higher productivity and higher firm sizes. Our results suggest that policies aimed at improving technology and innovation, and internationalization of firms are good for the firms' competitiveness and, therefore, the economy's competitiveness.

Note: Downloadable document is in Portuguese.

Keywords: Technology, innovation, R&D, exports, competitiveness, size, productivity, firm, Brazil

JEL Classification: D21, F10, F43, L60, O31, O33