Template-type: ReDIF-Paper 1.0
Author-Name: Novaresio, Anna  
Author-Email: anna.novaresio@ircres.cnr.it 
Author-Name: Patrucco, Pier Paolo  
Author-Email: patrucco@unito.it
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title: Innovation and trade in the automotive industry: evidence from European countries (1990-2018).
Abstract: The goal of the paper is threefold: 1) to empirically investigate whether out-of-equilibrium conditions
in international economic performances (exports & imports) are correlated with greater innovative
efforts (R&D expenditures) in the automotive industry, by means of both descriptive and inferential
techniques; 2) to explore, by using descriptive means, whether and which countries display the
abovementioned path, in search for possible local-specific dynamics; 3) to provide empirical evidence
in support of the existence of a self-feeding loop between trade indicators (exports & imports) and
R&D expenditures in the European automobile sector, by using an appropriate econometrical strategy
inspired by the “Crépon-Duguet-Mairesse” (CDM) method.
Our empirical analysis, based on a panel sample of European countries between 1990-2018, provide
substantial support to the hypothesis that a “creative response” to out-of-equilibrium export
conditions drives innovation also in the automotive industry.
Finally, our study confirms the existence of a self-reinforcing loop between exports, imports and
innovation in the automotive industry, which is yet mediated by the industry size, suggesting that the
economies of scale are still the major driver of the sectoral growth and innovation capability.
Length: pages 28
Creation-Date: 2023-05
File-URL: https://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2023dip/wp_06_2023.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:202306