Innovation and Export Competitiveness: Evidence from Georgia Firms

Abstract

Innovation has long been considered an important factor for creating and maintaining the competitiveness of nations and firms. Consequently, we examine the effect of innovation on export intensity using the Enterprise Surveys from World Bank Group for Georgian firms. Results evolves that the introduction of innovations, and in particular product innovations, is an important driver of export intensity. This study is based on an analysis of research done among 360 firms from Georgia. Firms that intensively involved in the innovation process record the highest export intensity and the magnitude of the impact of innovation on export is sizeable.