Are newly exporting firms more innovative? Findings from matched Spanish innovators

► Exporters have been singled out by the World Bank as using state-of-art technology (Ferro, 2011). ► We examine the creation of new process/product innovations by newly exporting firms. ► Newly exporting firms are more likely to upgrade manufacturing processes by 11%. ► But the push into exporting is mainly driven by productivity differences between firms. ► Have new exporters aligned production to satisfy foreign customers and cut costs?