Innovations, logistics and trade: Evidence from macro and micro data

In Oman there has been strong focus on economic diversification. The food industry in particular is expected to achieve higher performance though firms? export competitiveness. In the late 1990s food enterprises (and the government) have invested in food quality systems as a means to boost exports and improve firm?s export competitiveness. In recent years, there is more evidence on the relationship between exporting and innovation activity; Firms with a strong innovative capacity have higher export performance. Most literature focus on product and process innovations and their effects on firm?s export performance but more recently logistics has become a key factor in export performance. The Sultanate of Oman Logistics Strategy 2040 known as SOLS 2040, outlines a strategy that embraces the contribution of logistics to Omani GDP growth, the market share of goods that flow into the region, related employment growth, employment opportunities and job-creation. Our recent research on innovation process and the link between the University and the industry (Deanship of Research Fund, 2018) has investigated the supply side; the role of University in generating innovations and the gap between outputs and outcomes, called efficacy-effectiveness gap. Universities are addressing these pitfalls by more academic engagement and commercialization of knowledge. On the demand side, however, we know less on the incentives to innovation adoption and use and barriers, and the factors that enable such performance. This proposal aims to analyze the role of innovations to improve food trade with a focus on logistics as trade facilitator. Upon completion, the results will be useful to draw implications on the innovation process and impacts (in house and in logistics) on the level of competitiveness of food companies.