Table A1.

Variable definitions

FTIFirst-time innovator. A firm that declares to have introduced an innovation in a period, not having implemented any innovation since the first year it is observed in the sample
TFPLogarithm of total factor productivity
SizeLogarithm of the number of employees
ExportDummy variable that takes value 1 if the firm exports output in period t, and 0 otherwise
ImportDummy variable that takes value 1 if the firm imports intermediates in period t, and 0 otherwise
R&DR&D expenditures over sales
ProcessDummy variable that takes value 1 if the firm obtains a process innovation in period t, and 0 otherwise
ProductDummy variable that takes value 1 if the firm obtains a product innovation in period t, and 0 otherwise
Year dummiesDummy variable taking value 1 for the corresponding year, and 0 otherwise
Industry dummiesIndustry dummies accounting for 19 industrial sectors (OECD classification)
Source: Authors’ own work

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