Optimizing effects of firms' technological and non-technological processes on export-led innovation.

This study contributes to research by evaluating the optimizing effects of innovation approaches on export-led innovation to ascertain a more efficient outcome. It uses the probit model with binary endogenous regressors to test the effects on 4,049 firms' observations in Norway (1,784 manufacturing and 2,265 service firms). Results reveal that as export-led innovation induces a superior firm's innovation, it optimizes with innovation approaches – technological (STI) and non-technological (DUI) processes. While export-led innovation optimizes with STI in manufacturing firms' product and process innovations, the optimizing effect is traceable to service firms' process and service innovations. Nevertheless, export-led innovation optimizes with DUI in manufacturing firms' service and New-to-Market innovations, and the effect only associates with service firms' product innovations. Results show that while firms' and export-led innovations optimize with the individual influence of STI and DUI, their interaction is inadequate. The study indicates that innovation methods are crucial for optimizing export-led innovation and present constructive policy implications that entrench invaluable decision-making that can enhance business performance. [ABSTRACT FROM AUTHOR]