The impact of technological and non-technological innovations on export intensity in SMEs

Purpose The purpose of this paper is to investigate how both technological and non-technological innovations influence export intensity in small and medium-sized enterprises (SMEs). In addition, the authors report results for each firm-size category of micro-, small and medium firms, and thus reflect SME heterogeneity. Design/methodology/approach The research methodology is based on the analysis of the Eurobarometer 2014 data set from 28 EU Member States, Switzerland and the USA covering the period 2011-2014. To statistically test the three defined research hypotheses on individual and joint effects of both types of innovation, a multiple treatment model was estimated. The advantage of this empirical strategy is that it takes into account the endogeneity of both technological and non-technological innovations. Moreover, the authors employ the production approach or the direct test of complementarity between technological and non-technological innovations. Findings Empirical findings indicate that technological innovations positively affect export intensity in small and medium firms, whereas non-technological innovations exert no influence on export intensity, regardless of the firm size. Moreover, the results from the direct test suggest no evidence of the complementary effects of technological and non-technological innovation on export intensity. Originality/value The research fills a literature gap on the joint impact of technological and non-technological innovations on export intensity while taking into account the endogeneity of innovation activities and SME heterogeneity.