Abstract: This paper uses the matched data from China Customs database and Industrial enterprises’ database to analysis the dynamic relationship between import, export and innovation, combined with the propensity score matching variable weight estimation method. The results show that import will increase the probability of export and R&D, and the effects are more significant in the high-tech industry. Beside, the promotion of export on non-R&D enterprises is not significant, but it can increase the probability of innovation deepening of the R&D enterprises. In addition, the paper finds the optimal decision of import, export and innovation. It is that import will improve the innovation, and some R&D enterprises will promote the innovation deepening by export. The conclusion is still robust in consideration for industry heterogeneity. This paper provides micro-level empirical evidences for objective assessment of openness, and gives useful policy implications for innovation driven strategy under an open economy.

Key words: import, export, R&D and innovation, industrial heterogeneity