Abstract
This study examines the impact of firm de-internationalization and re-internationalization activities on product and process innovation, by drawing on an average sample of 2,857 Spanish manufacturers over the period 1990–2016. Consistent with the learning-by-exporting hypothesis, we find that de-internationalization and re-internationalization have respectively a negative and positive effect on both innovation outcomes. The analysis by host market shows that exiting or re-entering the same trade bloc (European Union) does not have an impact on any innovation outcome. Outside the EU, the effects vary based on the innovation form and market characteristics. The results hold theoretical and managerial implications.
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