The authors examine the differences in the behavior of the innovation between the Spanish agrifood and manufacturing firms using firm-level data from 1990-2008 to analyze the persistence in innovation and to explore the explanatory determinants of the probability of being product and process innovator. Survival functions, transition probability matrices, and dynamic discrete choice panel data models are combined to measure persistence. The results suggest that in the food industry the persistence of process innovation is higher than in product innovation. Environmental and market determinants such as market changes or appropriability are more decisive to explain innovation in food industry. By contrast, several determinant variables for innovation activities in the manufacturing sector seem not to be linked with the innovation in food firms. That is the case of the outsourcing ratio and the positive evolution of market share of the individual firm.
In this paper, we examine the survival capacity of trade relationships in cross‐border production chains. Our main contribution is to show that there are differences in the probability of export interruption between intermediate and final stages along the global value chain, finding a lower sensitivity of intermediate goods to the increasing competition from lower‐income countries. In addition, the paper also makes a methodological contribution by using time‐discrete duration models with product‐country random effects to control for unobservable heterogeneity and by including interactions in the model, in order to identify the sources of these differences. Our estimates show that variables such as EU membership, export experience, product and market diversification, initial trade value, destination market size, geographical proximity and economic proximity reduce the likelihood of export failure more for intermediate than for final goods, being the differential impact particularly higher for the two first variables. These results would suggest that factors that reduce uncertainty and search costs and increase trust and reliability among production partners are particularly relevant for intermediate stages, fostering the probability of remaining an active member of global production chains.
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