Agglomeration economies: are they relevant for innovation and export intensity?

Abstract

Our objective is to identify the effect of agglomeration on the export intensity of a company, taking into account the different types of agglomeration as well as the effect of certain internal characteristics, including innovation capacity, foreign-ownership, age and size, among others. Using data from a survey conducted in 2016 by the Technological Innovation Panel (PITEC), an analysis was performed with a sample of 1596 firms. The results obtained indicate that each type of agglomeration economy has a different effect on export intensity, this influence being direct or indirect through innovation. Our empirical findings open an agenda for policy-makers when deciding how they should promote innovation, agglomeration and exports, because they show that agglomeration directly and indirectly affects intensity export.