Abstract/Summary

This paper investigates the determinants of the propensity of firms to export new products, and focuses on the role of new imported inputs. Importing offers access to new technologies and better combination of inputs that can lead to new or improved products for the export markets. Based on a sample of more than 14,000 Swedish manufacturing firms over the period 2001-2012, we show that importing new inputs is a key determinant of firms' propensity to add new products to their export portfolio, even after controlling for multinationality,patenting activity, productivity and a number of other firm characteristics. This is mainly due to the import of new intermediate inputs and it is stronger for smaller firms.