Survival of the fittest: an evolutionary approach to an export-led model of growth

Abstract

Developing countries often rely on the export-led model of growth. Exposure to (developed) foreign markets increases learning opportunities for firms, enhances their competences and capabilities, and facilitates potentially more innovation. The actual benefit differs among firms depending on internal firm characteristics (genetic material). Using survey data for Slovenia we show that export orientation, firms’ genetic material, competences and capabilities and innovation are related. The paper contributes to the literature in several ways, primarily by extending knowledge on innovation and corporate behaviour in an export-led developing country, using micro level data.

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