Optimizing effects of firms’ technological and non-technological processes on export-led innovation

Figures & data

Table 1. Summary of hypothesized relationships.

Hypotheses	Relationships
H1	The innovative performance of exporting firms is higher than that of non-exporting firms, confirming a positive export-led innovation.
H2	Export-led innovation is positively associated with products and process-oriented innovations and is higher with the firms’ STI approach than with the DUI approach.
H3	Export-led innovation is positively associated with service-oriented innovation and is higher with firms’ DUI approach than with the STI approach.
H4	The impact of export-led innovation on firm performance is higher when STI and DUI do not interact than when there is interaction.

Table 2. The characteristics of the CIS sample (2016 - 2018) by firm size.

Firm type	Obs.	Mean	Std. Dev.	Obs.	Mean	Std. Dev.
Manufacturing firms Service firms
Small firms	790	0.44	0.49	1,103	0.48	0.49
Medium firms	608	0.34	0.47	641	0.28	0.45
Large firms	104	0.06	0.23	89	0.04	0.19

The firm sizes are dummy variables; the baseline category is the firms with less than ten employees and is not included in the model.

Table 3. Basic characteristics of the variables from CIS sample (2016 - 2018).

Variables	Sample for service firms			Sample for Manufacturing firms
	Obs Mean Std. Dev			Obs Mean Std. Dev
Dependent variables
Service innovation	2,265	0.44	0.49	1,784	0.21	0.41
NEW-to – MKT product innovation	2,265	0.33	0.46	1,784	0.30	0.45
NEW-to – FIRM product innovation	2,265	0.34	0.47	1,784	0.36	0.48
Product innovation	2,265	0.36	0.47	1,784	0.50	0.50
Process innovation	2,265	0.56	0.49	1,784	0.53	0.49
Independent variables
Log of research intensity	2,265	−0.31	1.10	1,784	–0.87	1.70
Log of firm size	2,265	3.35	1.15	1,784	3.56	1.19
Labour Competence	2,265	0.93	0.25	1,784	0.92	0.26
Technological approach (STI)	2,265	0.18	0.38	1,784	0.20	0.40
Nontechnological approach (DUI)	2,265	0.15	0.36	1,784	0.15	0.36
EXPORT market concentration	2,265	0.04	0.09	1,784	0.05	0.10
LOCAL market concentration	2,265	0.00	0.00	1,784	0.00	0.00
Business expansion strategies	2,265	0.98	0.11	1,784	0.98	0.12
Outsourcing	2,265	0.25	0.43	1,784	0.29	0.45
Export status	2,265	0.41	0.49	1,784	0.46	0.49
Financial support	2,265	0.20	0.43	1,784	0.29	0.45
New technology investment	2,265	0.69	0.46	1,784	0.70	0.45

Table 4. Average marginal effects and baseline estimation for manufacturing firms.

Variables	(1) Product innovation	(2) Process innovation	(3) Service innovation	(4) New-to-firm prod. Innov.	(5) New-to-market prod. innov.
Research intensity(log)	0.0036	0.0141	0.0118	0.0126	0.0035
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Firm size(log)	–0.0008	0.0000	0.0025	0.0274**	–0.0106
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Labor competence	0.0354	0.1520***	0.1410**	0.0618	0.0770
	(0.04)	(0.04)	(0.05)	(0.05)	(0.04)
Tech. approach (STI)	0.1840***	0.2030***	0.0953***	0.1550***	0.1170***
	(0.03)	(0.03)	(0.03)	(0.03)	(0.03)
Non-tech. approach (DUI)	0.2910***	0.2160***	0.1520***	0.2330***	0.1940***
	(0.03)	(0.03)	(0.03)	(0.03)	(0.03)
Export market conc.	0.3050*	0.0379	0.0989	0.0480	0.2380*
	(0.13)	(0.13)	(0.11)	(0.13)	(0.11)
Local market conc.	7.9340*	9.4690**	4.0670	9.4110**	5.3390
	(3.13)	(3.31)	(2.77)	(3.27)	(3.02)
Business expansion	0.5430***	0.3730*	1.3830***	1.8370***	0.3080*
	(0.16)	(0.15)	(0.07)	(0.07)	(0.14)
New tech. investment	0.0502	0.1610***	0.0807**	0.0730**	0.0309
	(0.03)	(0.03)	(0.02)	(0.03)	(0.03)
export	0.4970***	0.2820***	0.1590*	0.2010*	0.3940***
	(0.04)	(0.08)	(0.07)	(0.09)	(0.05)
Log likelihood	−2103.64	−2176.41	–1960.74	–2173.26	–2062.47
chi-square test	805.95***	354.66***	1084.42***	1528.83***	444.46***
Wald test of exogeneity	34.19***	10.70***	7.00***	4.46**	33.40***
No. of observations	1784	1784	1784	1784	1784

Marginal effects; Standard errors in parentheses. * p < 0.05, ** p < 0.01, *** p < 0.001

Table 5. Average marginal effects. Estimation with firm class dummy.

Variables	(1) Product innovation	(2) Process innovation	(3) Service innovation	(4) New-to-firm prod. Innov.	(5) New-to-market prod. innov.
Research intensity(log)	0.0041	0.0145	0.0110	0.0115	0.0026
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Large firm	0.0591	0.0664	0.0373	0.1540**	0.0124
	(0.06)	(0.06)	(0.05)	(0.06)	(0.05)
Medium firm	–0.0467	0.0084	–0.0400	0.0329	–0.0560
	(0.03)	(0.03)	(0.03)	(0.03)	(0.03)
Small firm	–0.0185	0.0378	–0.0193	–0.0064	0.0134
	(0.03)	(0.03)	(0.03)	(0.03)	(0.03)
Labor competence	0.0369	0.1470***	0.1450**	0.0689	0.0721
	(0.04)	(0.04)	(0.05)	(0.05)	(0.04)
Tech. approach (STI)	0.1780***	0.2000***	0.0930***	0.1520***	0.1130***
	(0.03)	(0.03)	(0.03)	(0.03)	(0.03)
Non-tech. approach (DUI)	0.2910***	0.2150***	0.1540***	0.2360***	0.1940***
	(0.03)	(0.03)	(0.03)	(0.03)	(0.03)
Export market conc.	0.3040*	0.0318	0.0974	0.0498	0.2300*
	(0.13)	(0.13)	(0.11)	(0.13)	(0.12)
Local market conc.	8.2660**	9.4310**	4.4590	9.7410**	5.5740
	(3.12)	(3.31)	(2.77)	(3.26)	(3.007)
Business expansion	0.5440***	0.3710*	1.3950***	1.8470***	0.2970*
	(0.16)	(0.15)	(0.10)	(0.08)	(0.14)
New tech. investment	0.0509	0.1620***	0.0836***	0.0747**	0.0344
	(0.03)	(0.03)	(0.02)	(0.03)	(0.03)
Export	0.5030***	0.2820***	0.1530*	0.1960*	0.3900***
	(0.04)	(0.08)	(0.07)	(0.09)	(0.05)
Log likelihood	−2100.81	–2174.89	–1958.37	–2171.57	–2058.15
chi-square test	814.15***	361.00***	887.04***	1403.33***	445.16***
Wald test of exogeneity	34.19***	10.70***	7.00***	4.46**	33.40***
No. of observations	1784	1784	1784	1784	1784

Marginal effects; Standard errors in parentheses. * p < 0.05, ** p < 0.01, *** p < 0.001

Figure 1. Marginal and interaction effects of the STI and DUI approaches for manufacturing firms.

Table 6. Average marginal effects of STI and DUI interaction for manufacturing firms.

Variables	(1) Product innovation	(2) Process innovation	(3) Service innovation	(4) New-to-firm prod. Innov.	(5) New-to-market prod. innov.
Research intensity(log)	0.0049	0.0136	0.0120	0.0127	0.0039
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Firm size(log)	−0.0016	0.0007	0.0018	0.0268**	−0.0115
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Labor competence	0.0346	0.1530***	0.1400**	0.0610	0.0762
	(0.04)	(0.04)	(0.05)	(0.05)	(0.04)
STI-DUI interaction	–1.5670***	−1.3340***	–0.8350***	–1.2910***	–1.0490***
	(0.15)	(0.15)	(0.15)	(0.17)	(0.15)
Export market conc.	0.2970*	0.0416	0.0960	0.0436	0.2330*
	(0.13)	(0.13)	(0.11)	(0.13)	(0.12)
Local market conc.	8.0270*	9.3960**	4.1160	9.4550**	5.4090
	(3.13)	(3.30)	(2.78)	(3.26)	(3.02)
Business expansion	0.5310***	0.3800*	1.3780***	1.8270***	0.3000*
	(0.15)	(0.15)	(0.09)	(0.07)	(0.14)
New tech. investment	0.0505	0.1600***	0.0814***	0.0742**	0.0319
	(0.03)	(0.03)	(0.02)	(0.03)	(0.03)
Export	0.4970***	0.2930***	0.1490*	0.1890*	0.3850***
	(0.04)	(0.08)	(0.07)	(0.09)	(0.05)
Log likelihood	–2104.52	–2176.90	–1961.18	–2173.65	–2063.22
chi-square test	794.27***	357.81***	1092.24***	1533.74***	429.75***
Wald test of exogeneity	34.19***	10.70***	7.00***	4.46**	33.40***
No. of observations	1784	1784	1784	1784	1784

Marginal effects; Standard errors in parentheses. * p < 0.05, ** p < 0.01, *** p < 0.001

Table 7. Average marginal effects of export on STI and DUI approach interaction for manufacturing firms.

DUI*STI = 0|export status	Outcome = 0.4100
DUI*STI = 1|export status	Outcome = 0.0000

Table 8. Average marginal effects and baseline estimation for service firms.

Variables	(1) Product innovation	(2) Process innovation	(3) Service innovation	(4) New-to-firm prod. Innov.	(5) New-to-market prod. innov.
Research intensity(log)	−0.0032	−0.0263*	−0.0356***	−0.0229*	−0.0092
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Firm size(log)	−0.0310***	0.0042	0.0075	0.0088	−0.0171*
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Labor competence	0.0670	0.1970***	0.1660***	0.2110***	0.0654
	(0.04)	(0.04)	(0.04)	(0.05)	(0.04)
Tech. approach (STI)	0.1760***	0.1490***	0.2130***	0.1190***	0.1810***
	(0.03)	(0.03)	(0.03)	(0.03)	(0.02)
Non-tech. approach (DUI)	0.1370***	0.2450***	0.2180***	0.0821**	0.2240***
	(0.03)	(0.03)	(0.03)	(0.03)	(0.02)
Export market conc.	0.0559	−0.3180*	−0.1630	−0.1940	−0.0559
	(0.11)	(0.13)	(0.13)	(0.12)	(0.10)
Local market conc.	−2.3970	4.1220	5.4740	3.1270	1.7220
	(2.84)	(3.06)	(3.02)	(3.02)	(2.73)
Business expansion	1.8320***	0.0849	0.4460**	1.7170***	0.3210*
	(0.11)	(0.09)	(0.16)	(0.04)	(0.15)
New tech. investment	0.0664**	0.1500***	0.0753***	0.0535*	0.0795***
	(0.02)	(0.02)	(0.02)	(0.02)	(0.02)
export	0.5860***	0.3730***	0.4050***	0.2200*	0.5350***
	(0.02)	(0.09)	(0.06)	(0.09)	(0.03)
Log likelihood	–2739.81	−2847.57	−2841.52	−2841.89	−2675.65
chi-square test	3009.71***	419.12***	496.36***	3786.04***	1116.41***
Wald test of exogeneity	74.77***	8.69***	18.22***	2.79	91.57***
No. of observations	2265	2265	2265	2265	2265

Marginal effects; Standard errors in parentheses. * p < 0.05, ** p < 0.01, *** p < 0.001

Table 9. Average marginal effects with a firm class dummy for service firms.

Variables	(1) Product innovation	(2) Process innovation	(3) Service innovation	(4) New-to-firm prod. Innov.	(5) New-to-market prod. innov.
Research intensity(log)	−0.0033	−0.0270*	−0.0366***	−0.0240*	−0.0087
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Large firm	−0.1250***	−0.0011	0.0008	−0.0049	−0.0404
	(0.03)	(0.03)	(0.03)	(0.03)	(0.03)
Medium firm	−0.0424	0.0191	0.0501	0.0866	−0.0815
	(0.05)	(0.05)	(0.05)	(0.06)	(0.05)
Small firm	−0.0547*	0.0090	0.0014	−0.0027	−0.0075
	(0.02)	(0.03)	(0.03)	(0.03)	(0.02)
Labor competence	0.0692	0.1970***	0.1680***	0.2130***	0.0638
	(0.04)	(0.04)	(0.04)	(0.05)	(0.04)
Tech. approach (STI)	0.1750***	0.1500***	0.2130***	0.1200***	0.1820***
	(0.03)	(0.03)	(0.03)	(0.03)	(0.02)
Non-tech. approach (DUI)	0.1340***	0.2450***	0.2170***	0.0807**	0.2250***
	(0.03)	(0.03)	(0.03)	(0.03)	(0.02)
Export market conc.	0.0561	−0.3140*	−0.1600	−0.1910	−0.0557
	(0.11)	(0.13)	(0.13)	(0.12)	(0.10)
Local market conc.	−2.5230	4.0820	5.3610	2.9400	1.7930
	(2.83)	(3.06)	(3.03)	(3.02)	(2.73)
Business expansion	1.8390***	0.0864	0.4460**	1.7190***	0.3190*
	(0.11)	(0.09)	(0.16)	(0.04)	(0.14)
New tech. investment	0.0663**	0.1510***	0.0759***	0.0539*	0.0795***
	(0.02)	(0.02)	(0.02)	(0.02)	(0.02)
Export	0.5850***	0.3670***	0.4010***	0.2100*	0.5340***
	(0.03)	(0.09)	(0.06)	(0.09)	(0.03)
Log likelihood	–2735.25	−2847.53	−2841.44	−2840.81	−2675.360
chi-square test	3223.25***	413.09***	486.96***	3230.40***	1125.41***
Wald test of exogeneity	74.77***	8.69***	18.22***	2.79	91.57***
No. of observations	2265	2265	2265	2265	2265

Marginal effects; Standard errors in parentheses. *p < 0.05, ** p < 0.01, *** p < 0.001

Figure 2. Marginal and interaction effects of the STI and DUI approaches for service firms.

Table 10. Average marginal effects of STI and DUI interaction for service firms.

Variables	(1) Product innovation	(2) Process innovation	(3) Service innovation	(4) New-to-firm prod. Innov.	(5) New-to-market prod. innov.
Research intensity(log)	−0.0045	−0.0258*	−0.0363***	−0.0238*	−0.0093
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Firm size(log)	−0.0305***	0.0036	0.0080	0.0097	−0.0171*
	(0.01)	(0.01)	(0.01)	(0.01)	(0.01)
Labor competence	0.0675	0.1960***	0.1670***	0.2110***	0.0655
	(0.04)	(0.04)	(0.04)	(0.05)	(0.04)
STI-DUI interaction	−0.9660***	−1.3030***	−1.3770***	−0.6180***	−1.3150***
	(0.14)	(0.16)	(0.15)	(0.15)	(0.13)
Export market conc.	0.0675	−0.3230*	−0.1560	−0.1860	−0.0550
	(0.10)	(0.13)	(0.12)	(0.12)	(0.10)
Local market conc.	−2.5820	4.2070	5.3840	2.9490	1.7120
	(2.84)	(3.06)	(3.02)	(3.02)	(2.73)
Business expansion	2.0750***	0.0871	0.4400**	1.7050***	0.3210*
	(0.136)	(0.0898)	(0.162)	(0.0438)	(0.145)
New tech. investment	0.0654**	0.1510***	0.0748***	0.0528*	0.0795***
	(0.02)	(0.02)	(0.02)	(0.02)	(0.02)
Export	0.5920***	0.3590***	0.4140***	0.2390**	0.5360***
	(0.02)	(0.09)	(0.06)	(0.09)	(0.03)
Log likelihood	–2743.058	–2848.47	–2842.56	–2843.75	–2675.67
chi-square test	2318.53***	405.69***	510.89***	3030.15***	1118.47***
Wald test of exogeneity	74.77***	8.69***	18.22***	2.79	91.57***
No. of observations	2265	2265	2265	2265	2265

Marginal effects; Standard errors in parentheses. * p < 0.05, ** p < 0.01, *** p < 0.001

Table 11. Average marginal effects of export on STI and DUI approach interaction for service firms.

DUI*STI = 0|export status	Outcome = 0.58
DUI*STI = 1|export status	Outcome = 0.00

Table

Variable	Measurement description
Product innovation	The dummy variable takes the value ‘1’ for firms that introduced new or significantly improved goods and ‘0’ otherwise, taken from CIS data.
Process innovation	The dummy variable takes the value ‘1’ for firms that introduced new or significantly improved processes or methods for innovation in business processes and ‘0’ otherwise, taken from CIS data.
Service innovation	The dummy variable takes the value ‘1’ for firms that introduced new or significantly improved services and ‘0’ otherwise, taken from CIS data.
New-to-market product innovation	The dummy variable takes the value ‘1’ for firms whose product or service innovations are new to the company's market ‘0’ otherwise, taken from CIS data.
New-to-firm product innovation	The dummy variable takes the value ‘1’ for firms whose product or service innovations are new to the firm ‘0’ otherwise, taken from CIS data.
Export	The dummy variable takes the value ‘1’ for firms that sold to the Norwegian market and other markets beyond Norway and ‘0’ otherwise, taken from CIS data.
Research intensity	Share of R&D expenditure (external and in-house) in a total turnover in the surveyed year. It is computed with the CIS and accounting data.
Local market concentraion	Percentage of firm turnover locally based on Hirschman – Herfindahl concentration index, taken from CIS data.
Export market concentration	Percentage of firm turnover abroad based on Hirschman – Herfindahl concentration index, taken from CIS data.
Financial support	The dummy variable takes the value ‘1’ for firms that receive government funds for export activities, specifically, not indicated for innovation, and ‘0’ otherwise, taken from CIS data.
Labor competence	The dummy variable takes the value ‘1’ for firms that deem it important or fairly important for education and skill development to organize work ‘0’ otherwise, taken from CIS data.
Outsourcing	The dummy variable takes the value ‘1’ for firms that buy R&D services from others during the period and ‘0’ otherwise, taken from CIS data.
New technology investment	The dummy variable takes the value ‘1’ for firms that procure new machinery, equipment, or software based on technology during the period ‘0’ otherwise, taken from CIS data.
Technological approach (STI)	The dummy variable takes the value ‘1’ for firms that used universities, research institutes, and consultancy firms as partners for innovation and ‘0’ otherwise, taken from CIS data.
Non-technological approach (DUI)	The dummy variable takes the value ‘1’ for firms that used suppliers and customers as partners for innovation ‘0’ otherwise, taking from CIS data.
Business expansion strategies	The dummy variable takes the value ‘1’ for firms that responded with 3, 2, and 1 as strategies for financial results in the period and ‘0’ otherwise, taken from CIS data.
Firm size	The number of employees in the company at the time of the survey. Taking from accounting data