My question is about exporter dynamics database (1976-2014). If this variable can tell me the exporting firms behind the aggregate flows of goods across borders, then can I use this as results of innovations after determining the firm's activities?
I assume you are referring to the World Bank’s export dynamics database. One of my former students tried to use this database in a study of firms entering international markets. From what I know that database does contain a number of variables that include “new products”, which arguably could be an extremely weak indicator of innovation, if the product is something manufactured using new processes or new materials. But it would be a stretch convincing people that new products indicate innovation. I would personally not be convinced.
If a firm has been exporting, say rice before and it now, in say 2017, starts to export rice-based products, it is actually exporting value-added products. But that is not innovation as one might expect innovation to be. But, if the firm has developed an entirely new process compared to others, and different from others, one might argue that the firm has come up with a process innovation and you have to let others decide that there is innovation. But, if the firm has a patented process, one can speak of innovation. Then, there is no doubt.
I hope this somehow helps… good luck.
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