Dissecting the impact of innovation on exporting in Turkey

Does innovating promote firms' export probability? By separately modelling - theoretically as well as empirically - the impact of process and product innovation, we show that the joint adoption of both innovation strategies fosters Turkish firms' first time export entry in rich destination markets. Nevertheless, innovation strengthens firms' export probability. As predicted by our theoretical sketch, product innovation matters in particular for exporting to developing economies, while process innovation reinforces the role of product innovation for exporting to richer markets.