Exports and Innovation in Malaysia: the role of Heterogeneity

The objective of this paper was to empirically examine the impact exports on level innovation in manufacturing sector Malaysia and focus role heterogeneity by using detailed industry-level cross-sectional data Malaysia’s 2014. Utilising CDM model, as postulated Crepon, Duguet & Mairesse (1998), investigated whether exporting more countries, greater volumes, volumes high-income countries induced industry increase its innovation. Estimates from model showed, overall, a positive innovation, specifically, mattered industries’ innovating Malaysia. Additionally, additional foreign destinations, product, products low-income especially South Asian Southeast had significant influence inducing industries engage activities.