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The Role of Cooperation and Innovation in Reducing the Likelihood of Export Withdrawals

SUMMARY This study concentrates on analyzing the role played by innovation and cooperation in the likelihood of Estonian wood industry enterprises' export withdrawals. The data obtained from two different databases show that about 40% of the Estonian wood sector firms have withdrawn from (some of) their foreign markets. The results indicate that export withdrawls are more typical of those firms that have not introduced new products, services or processes. In the case of cooperative activities the data present mixed results, not allowing us to draw explicit conclusions.