Although a substantial body of research has investigated spillovers to FDI, we know
very little about whether, and how, firms stand to benefit from spillovers without
making such crossborder investments. In this study I investigate this issue by
examining the ex-post innovative benefits that accrue to exporting firms. I
argue that exporters access diverse knowledge inputs not available in the domestic
market.This knowledge spills back to the focal firm and results in increased
innovation. I explore how exporters derive such knowledge-based advantages by
examining the relationship between export strategies and innovative productivity.
Specifically, I contend that firms that export to developed countries will
experience increased innovative productivity. Similarly, firms that reach the
foreign market directly rather than relying on export brokers should innovate more,
as they maintain closer ties with their information conduits.The empirical analysis
is conducted using a stratified representative sample of Spanish manufacturing firms
from 1990 to 1997. The dependent variable (innovation) is measured using several
widely employed proxies including patent counts and innovation counts. I find that
export strategies influence innovation in complex ways. I discuss the relevance of
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