Innovation in export and absorption of foreign knowledge

Abstract

The study focuses on a possible link between the different types of knowledge that firms acquire and the export of new products and services. Technological knowledge absorption from abroad is one of the sources of innovation for developing countries. On the one hand, this absorption leads to technological development. On the other hand, it can cause falling into the trap of technological dependence. The study tests the hypothesis about no relationship between foreign knowledge absorption and export of innovations by the Russian firms. The analysis uses the regional panel data from 2010 to 2018 to build the logistic regression model. Also, the paper considers other factors of export and innovation, for example, foreign investment and R&D intensity. The results show for most Russian regions a positive relationship between foreign knowledge absorption and the export of new products and services, as for many developing countries. However, there are significant differences from developing countries closing the technology gap, like the prevailing types of knowledge absorption and main factors of creating and exporting innovation. The paper suggests some policy recommendations to develop exporting activities of the innovative Russian firms.