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Globalisation of Innovation in SMEs: Why They Go Abroad and What They Bring Back Home

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  • Christian Rammer
  • Anja Schmiele

Abstract

This paper investigates the drivers and the effects of the internationalisation of innovation activities in SMEs based on a large data set of German firms. We look at different stages of the innovation process (R&D, design, production and sales of new products, and implementation of new processes) and explore the role of internal resources, home market competition and innovation-related location advantages for an SME’s decision to engage in innovation activities abroad. By linking international innovation activities to firm growth in the home market we try to identify likely internationalisation effects at the firm level. The results show that export experience and experience in knowledge protection are highly important for international innovation activities of SMEs. High innovation costs at home stimulate internationalisation of non-R&D innovation activities, and shortage of qualified labour expels production of new products. R&D activities abroad and exports of new products spur firm growth in the home market.COMMENT: Axel Mangelsdorf

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Bibliographic Info

Article provided by Duncker & Humblot, Berlin in its journal Applied Economics Quarterly.

Volume (Year): 59 (2008)
Issue (Month): Supplement ()
Pages: 173-212

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Handle: RePEc:aeq:aeqaeq:v59_y2008_is_q5_p173-212

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Related research

Keywords: Internationalisation of Innovation; Globalisation; SMEs; Effects of Innovation; Absorptive Capacities; Market Structure.;

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Cited by:
  1. Heinz Hollenstein & Martin Berger, 2012. "Determinants of Equity-based and Co-operative Foreign R&D and Impact on the Parent Firm’s Performance," KOF Working papers 12-305, KOF Swiss Economic Institute, ETH Zurich.
  2. Spyros Arvanitis & Heinz Hollenstein, 2010. "How Do Different Motives for R&D Investment in Foreign Locations Affect Domestic Firm Performance? An Analysis Based on Swiss Panel Micro Data," WIFO Working Papers 375, WIFO.
  3. Rammer, Christian & Bethmann, Nicola, 2009. "Schwerpunktbericht zur Innovationserhebung 2008: Innovationspartnerschaften - Schutz und Verletzung von intellektuellem Eigentum," ZEW Dokumentationen 09-01, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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