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The birth of new HGEs: internationalization through new digital technologies

Author

Listed:
  • Mercedes Teruel

    (Universitat Rovira I Virgili)

  • Alex Coad

    (Waseda University)

  • Clemens Domnick

    (Joint Research Centre - European Commission)

  • Florian Flachenecker

    (Joint Research Centre - European Commission
    University College London, Central House)

  • Peter Harasztosi

    (European Investment Bank)

  • Mario Lorenzo Janiri

    (Joint Research Centre - European Commission)

  • Rozalia Pal

    (European Investment Bank)

Abstract

This paper explores the relationship between new digital technologies, internationalisation activity and its impact on High Growth Enterprises (HGEs), using the EIB Group Survey of Investment and Investment Finance and ORBIS data for 27 EU Member States and the United Kingdom. After controlling for sample selection bias, our results suggest that being a HGE is positively associated with the probability that a firm conducts international activities, particularly FDI. Conversely, the internationalisation process seems to trigger strong subsequent firm-growth only for FDI, not for exports. Furthermore, we show evidence on the positive association between firms that are internationalised and those adopting new digital technologies. The adoption of new digital technologies is indirectly related to the status of being a HGE via internationalisation activity in the current period. Our results highlight the complex influence of exporting and FDI on the capacity to become a HGE and the role of new digital technologies in this process.

Suggested Citation

  • Mercedes Teruel & Alex Coad & Clemens Domnick & Florian Flachenecker & Peter Harasztosi & Mario Lorenzo Janiri & Rozalia Pal, 2022. "The birth of new HGEs: internationalization through new digital technologies," The Journal of Technology Transfer, Springer, vol. 47(3), pages 804-845, June.
    • Handle: RePEc:kap:jtecht:v:47:y:2022:i:3:d:10.1007_s10961-021-09861-6
    DOI: 10.1007/s10961-021-09861-6
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    More about this item

    Keywords

    Digital technologies; Export; FDI; HGE; Internationalisation;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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