Innovation and Export Performance: An Empirical Insight on the Effect of Innovation on Manufacturing Firms in Cameroon

Abstract

The objective of this paper was to examine the effects of innovation types on the intensity and propensity to export by manufacturing firms in Cameroon. The data were secondary based on statistics collected by the International Development Research Centre (IDRC) on the manufacturing firms in Cameroon between 2011 and 2013. The data were analysed using the tobit and logit estimation techniques. The analyses revealed that different innovation activities namely process, product, market and organisation innovations have been instituted by firms in Cameroon. The empirical results showed that innovation has a positive effect on both the probability and volume to export. Specifically, only non-technological innovations significantly account for variations in export performance, while technological embedded innovations insignificantly influence export variation. Precisely, the results indicated that market and organizational innovations significantly increase intensity and propensity to export, while product innovation has a significant and positive effect on quantity exported and not on export likelihood. Other findings showed that corruption retards export performance while a stable macro-economy improved upon export performance. The findings therefore support government and public policies that promote innovative ways of firms in carrying out their daily activities.