R&D, product innovation, and exporting:evidence from UK new technology based firms

Ganotakis, Panagiotis and Love, James H. R&D, product innovation, and exporting:evidence from UK new technology based firms. Oxford Economic Papers, 63 (2), pp. 279-306.

Abstract

We examine the relationship between R&D, product innovation, and exporting for a sample of new technology based firms (NTBFs) in the UK. Allowance is made for selection bias and for endogeneity between innovation and exporting. Product innovators are more likely to export, but conditional on entering export markets successful innovation does not increase subsequent export intensity. Lagged productivity is strongly associated with exporting, supporting the view that efficient firms are better able to overcome the barriers to entering export markets. We also find strong evidence of the importance of internal R&D and of supply-chain collaborations in fostering innovation, and that formal commercial collaborations can be important in overcoming the (information) sunk costs of entering export markets. The use of e-commerce does nothing to boost entry into export markets, but the intensity of its use is associated with increased export intensity.

Publication DOI: https://doi.org/10.1093/oep/gpq027
Divisions: Aston Business School > Operations & information management
Aston Business School > Economics finance & entrepreneurship
Aston Business School > Economics finance & entrepreneurship research group
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Additional Information: This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Oxford economic papers following peer review. The definitive publisher-authenticated version Ganotakis, P., & Love, J. H. (2011). R&D, product innovation, and exporting: Evidence from UK new technology based firms. Oxford economic papers, 63(2), 279-306 is available online at: http://oep.oxfordjournals.org/content/63/2/279

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