technologies, leading to higher productivity. We propose a model of endogenous selection and innovation in heterogeneous firms that … product and process innovation (simultaneously adopting new machines and organizational practices) and adopt foreign … jointly explains the observed selection process and the innovation decisions. Further, we show in the data that innovation on …

macroeconomic shocks. Our results confirm that selection into exporting is largely driven by productivity and industry technological … process innovation rates. -- Exporting ; innovation ; Propensity Score Kernel Matching ; Learning-by-exporting …