Multifaceted impacts of R&D activities on exporting behavior

This study uses data from China to investigate the multidimensional impacts of R&D activities on a firm’s exporting behaviour. The findings confirm the well-documented positive effects of innovations on export participation and export volumes while also uncovering additional aspects of innovation’s influence on exporting. Specifically, firms that engage in research activities charge lower prices, offer a wider variety of exported products, enter more international markets, and demonstrate a tendency to expand into smaller and less affluent export markets. These findings offer cohesive and unified support for the effects of innovation on export that align with the implications of heterogeneous-firm trade models.