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Exporting, R&D, and absorptive capacity in UK establishments

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  • Richard Harris
  • Qian Cher Li

Abstract

This paper models the determinants of exporting (both in terms of export propensity and export intensity), with a particular emphasis on the importance of absorptive capacity and the endogenous link between exporting and undertaking R&D. Based on a merged dataset of the 2001 Community Innovation Survey and the 2000 Annual Respondents Database for the UK, our results suggest that establishment size plays a fundamental role in explaining exporting. Meanwhile, alongside other factors, undertaking R&D activities and having greater absorptive capacity (for scientific knowledge, international co-operation, and organizational structure) significantly reduce entry barriers into export markets, having controlled for self-selectivity into exporting. Nevertheless, conditional on entry into international markets, only greater absorptive capacity (associated with scientific knowledge) seems to further boost export performance in such markets, whereas spending on R&D no longer has an impact on exporting behaviour once we have taken into account its endogenous nature. Copyright 2009 , Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 61 (2009)
Issue (Month): 1 (January)
Pages: 74-103

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Handle: RePEc:oup:oxecpp:v:61:y:2009:i:1:p:74-103

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Cited by:
  1. Kampik, Franziska & Dachs, Bernhard, 2010. "The innovative performance of German multinationals abroad," MPRA Paper 28102, University Library of Munich, Germany.
  2. Jacinta Moreira & Maria Jose Silva & Jorge Simões & Gastão Sousa, 2012. "Drivers of Marketing Innovation in Portuguese Firms," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(31), pages 195-206, February.
  3. Lionel Nesta & Sarah Guillou & Flora Bellone, 2009. "Are Export Premia Robust to Innovation Statistics?," Sciences Po publications 39, Sciences Po.
  4. Facundo Albornoz & Matthew A Cole & Robert J R Elliott & Marco G Ercolani, 2008. "In Search of Environmental Spillovers," Discussion Papers 08-03, Department of Economics, University of Birmingham.
  5. Bettina Becker, 2013. "The Determinants of R&D Investment: A Survey of the Empirical Research," Discussion Paper Series 2013_09, Department of Economics, Loughborough University, revised Sep 2013.
  6. Huang, Can & Arundel, Anthony & Hollanders, Hugo, 2010. "How Firms Innovate: R&D, Non-R&D, and Technology Adoption," Working Papers 9854, University of Tasmania, School of Economics and Finance, revised 19 Nov 2012.
  7. Tavassoli, Sam, 2013. "The Role of Product Innovation Output on Export Behavior of Firms," CITR Working Paper Series 2013/05, Center for Innovation and Technology Research, Blekinge Institute of Technology.
  8. Fu, Dahai & Wu, Yanrui & Tang, Yihong, 2010. "Does innovation matter for Chinese hightech exports? a firm-level analysis," MPRA Paper 30012, University Library of Munich, Germany.
  9. Maria JOSE SILVA & Gastão SOUSA & Jacinta MOREIRA & Jorge SIMÕES, 2011. "Innovation Activities in the Service Sector: Empirical Evidence from Portuguese Firms," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 1(6), pages 17, October.
  10. Ioannis Bournakis & Sushanta Mallick & David Kernohan & Dimitris A.Tsouknidis, 2013. "Measuring Firm-Level Productivity Convergence in the UK: The Role of Taxation and R&D Investment," Working Papers 45, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
  11. Christopher F Baum & Mustafa Caglayan & Oleksandr Talavera, 2012. "R&D Expenditures and Geographical Sales Diversification," Boston College Working Papers in Economics 794, Boston College Department of Economics, revised 12 Nov 2012.
  12. Oliviero A. Carboni, 2013. "A spatial analysis of R&D: the role of industry proximity," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(8), pages 820-839, November.
  13. B. Michael Gilroy & Elmar Lukas & Christian Heimann, 2010. "Welchen Einfluss hat die Anwesenheit von ausländischen und multinationalen Unternehmungen auf die deutschen Exporte?," Working Papers 31, University of Paderborn, CIE Center for International Economics.
  14. Richard Harris & Victoria Kravtsova, 2009. "In Search of W," SERC Discussion Papers 0017, Spatial Economics Research Centre, LSE.

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