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Learning by exporting: Lessons from high-technology SMEs

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  • Love, James H.
  • Ganotakis, Panagiotis
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    Abstract

    We investigate the learning by exporting hypothesis by examining the effect of exporting on the subsequent innovation performance of a sample of high-technology SMEs based in the UK. We find evidence of learning by exporting, but the pattern of this effect is complex. Exporting helps high-tech SMEs innovate subsequently, but does not make them more innovation intensive. There is evidence that consistent exposure to export markets helps firms overcome the innovation hurdle, but that there is a positive scale effect of exposure to export markets which allows innovative firms to sell more of their new-to-market products on entering export markets. Service sector firms are able to reap the benefits of exposure to export markets at an earlier (entry) stage of the internationalization process than are manufacturing firms. Innovation-intensive firms exhibit a different pattern of entry to and exit from export markets from low-intensity innovators, and this is reflected in different effects of exporting.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 22 (2013)
    Issue (Month): 1 ()
    Pages: 1-17

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    Handle: RePEc:eee:iburev:v:22:y:2013:i:1:p:1-17

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    Related research

    Keywords: High-tech SMEs; Innovation; Learning by exporting;

    References

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    Cited by:
    1. Dimitratos, Pavlos & Amorós, José Ernesto & Etchebarne, María Soledad & Felzensztein, Christian, 2014. "Micro-multinational or not? International entrepreneurship, networking and learning effects," Journal of Business Research, Elsevier, vol. 67(5), pages 908-915.
    2. Mitja Ruzzier & Jana Hojnik & Aleš Lipnik, 2013. "Relationship between Innovation and Internationalization of Slovenian Internationalized Companies," MIC 2013: Industry, Science and Policy Makers for Sustainable Future; Proceedings of the 14th International Conference, Koper, 21–23 November 2013 [Selected Papers], University of Primorska, Faculty of Management Koper.
    3. Lööf, Hans & Nabavi, Pardis, 2013. "Learning and Productivity of Swedish Exporting Firms: The importance of Innovation Efforts and the Geography of Innovation," Working Paper Series in Economics and Institutions of Innovation 296, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    4. Yang, Yong & Mallick, Sushanta, 2014. "Explaining cross-country differences in exporting performance: The role of country-level macroeconomic environment," International Business Review, Elsevier, vol. 23(1), pages 246-259.

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