Indirect import, intermediate trade liberalization and corporate innovation

Key Points

• Corporate innovation increases significantly with more direct access to intermediate trade routes, and this affects long-term competitiveness.
• A notable increase in innovation is observed with a 15% rise in intermediate trade liberalization within industries in developing economies.
• Analysis highlights the impact of indirect imports, linking them to enhanced corporate innovation and growth potential across various sectors.
• The findings might suggest that broadening trade strategies can empower firms, but further localized studies are essential to confirm broader trends.