Direct Evidence on Learning by Exporting: Customers, Competitors and Technology Leadership

We examine first direct evidence on the occurrence of learning by exporting, using unique survey data for German innovating firms on the role of (foreign) customers and competitors as sources of ideas and impetus for innovation. Export intensive firms frequently benefit simultaneously from domestic learning and export learning – an issue that has been ignored in prior studies. Learning from foreign customers is more prevalent than learning from foreign competitors. Firms’ underlying innovation strategy appears as an important moderator of the propensity to learn and of the relationship between learning and innovativeness. Firms adopting a strategy of technology leadership more often exhibit effective learning from diverse foreign customers and this learning is strongly associated with innovative sales – but mostly so if combined with domestic customer learning. In contrast, firms that have not adopted a leadership strategy benefit most from foreign competitor learning, as they are more likely to respond to competitive pressures abroad by product imitation.