Product and process innovation boost firms' chances to enter export market.
The study looked at how innovation in products and processes affects a company's decision to start exporting. They used data from Belgium to see if firms that innovate are more likely to enter the export market. The results showed that firms that combine product and process innovation are more likely to start exporting. Only firms with a high chance of exporting engage in innovation before entering the export market, showing that innovation plays a role in deciding to export.