Product and Market Knowledge Spillover Effects on Innovation and Regional Export Growth : The Case of New Zealand

This study extends the previous research into the effects of knowledge spillovers on innovation and regional exports growth by more clearly distinguishing, both theoretically and empirically, two different types of knowledge spillovers, namely product and market knowledge spillovers. More importantly, this research provides insights on their role of knowledge spillovers in shaping regional innovative activities and, eventually, regional export growths. Furthermore, this research makes an important contribution to the understudied market knowledge spillovers by developing two variables that could be used to assess the flow of market knowledge spillovers at the regional level: localization economies and export consulting advice. Using secondary data on eight 2-digit manufacturing industries in ten New Zealand regions over a seven year period, this research found that regional competition, localization economies and the availability of export consulting advice have positively and significantly impact on the regional export growth in New Zealand.