In older work, we study whether innovation causes higher export performance of firms. Using firm-level data of the ifo Innovation Survey, we find that higher innovative activity increases the export share of German manufacturing firms. Our empirical model exploits variation in firms' innovative activity that emerges from specific exogenous innovation impulses and obstacles.
Does Innovation Cause Exports? Evidence from Exogenous Innovation Impulses and Obstacles Using German Micro Data (with S. Lachenmaier). Oxford Economic Papers 58 (2): 317-350, 2006