Abstract

The Schumpeterian creative response provides an effective framework to understand the determinants of the twin and self-supporting loop relationship between export and innovation in the global economy. Exports spur the creative response and innovation efforts which lead to the introduction and adoption of technological innovations that increase labor productivity and, in turn, exports. There is significant and robust empirical evidence for eight manufacturing industries in 13 OECD countries during the period 1995–2015 confirming the central role of the creative response in the Schumpeterian loop between innovation and export.

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