THE IMPACT OF INNOVATION ON EXPORT PARTICIPATION: AN EMPIRICAL ANALYSIS OF SMALL AND MEDIUM-SIZED ENTERPRISES IN CENTRAL ASIA
DOI:
https://doi.org/10.52754/16948610_2026_3_16%20Keywords:
innovation, export participation, small and medium-sized enterprises, R&D, access to finance, digital adoption, Central Asia, logit modelAbstract
This paper investigates whether firm-level innovation increases export participation among small and medium-sized enterprises (SMEs) in Central Asia. Using World Bank Enterprise Survey data covering Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan, we estimate logit models and report average marginal effects. The results show that product innovation increases export participation by 1.7 percentage points, process innovation by 1.8 percentage points, and R&D innovation by 3.6 percentage points. Foreign ownership, financial access, firm size, and digital presence also significantly increase the likelihood of exporting. Sectoral differences indicate that manufacturing firms are more export-oriented than services and retail firms. Time effects suggest a growing export orientation after 2019. The findings highlight the importance of innovation capability and financial access in overcoming fixed export entry costs in transition economies. Policies that strengthen R&D support, digital adoption, and SME credit access may enhance export integration in the region.
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