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Cassiman, Bruno; Golovko, Elena; Martínez-Ros, E.
From the National Export Initiative in the United States to the European Commission’s recent study on the internationalization of SMEs, it seems that everyone agrees that small firms need to export to become big players. But only the most productive companies tend to enter foreign markets in the first place, so what determines this productivity? In their study, “Innovation, Exports and Productivity,” Bruno Cassiman et al. show that product innovation appears to be key.
Cassiman, Bruno; Golovko, Elena
Why do some firms survive while others fail? This is a question that provides endless fodder for researchers, economists, and other analysts. Of course, if the answer were easy, then there would be far fewer failures and a lot more successes. The truth is that there are many factors that influence a firm's survival, or lack thereof. One such factor is believed to be exporting, which is assumed to have a strong effect on a firm's productivity. Not so fast. In "Innovation and the Export-Productivity Link," IESE Professor Bruno Cassiman and Professor Elena Golovko from Tilburg University show that exporting is affected by how innovative a firm is and it is innovation which actually leads to higher productivity.