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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. Richard Harris & Victoria Kravtsova, 2009. "In Search of W," SERC Discussion Papers 0017, Spatial Economics Research Centre, LSE.
  3. 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.
  4. Spyros Arvanitis & Areti Gkypali & Kostas Tsekouras, 2014. "Knowledge Base, Exporting Activities, Innovation Openness and Innovation Performance: A SEM Approach Towards a Unifying Framework," KOF Working papers 14-361, KOF Swiss Economic Institute, ETH Zurich.
  5. OA. Carboni, 2012. "A Spatial Analysis of R&D: the Role of Industry Proximity," Working Paper CRENoS 201204, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  6. 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.
  7. Flora Bellone & Sarah Guillou & Lionel Nesta, 2009. "Are Export Premia Robust to Innovation Statistics ?," Documents de Travail de l'OFCE 2009-15, Observatoire Francais des Conjonctures Economiques (OFCE).
  8. Tavassoli, Sam, 2013. "The Role of Product Innovation Output on Export Behavior of Firms," CIRCLE Electronic Working Papers 2013/38, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  9. 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.
  10. Ivan Faiella & Alessandro Mistretta, 2014. "Firms' energy costs and competitiveness in Italy," Questioni di Economia e Finanza (Occasional Papers) 214, Bank of Italy, Economic Research and International Relations Area.
  11. repec:pdn:wpaper:31 is not listed on IDEAS
  12. 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.
  13. 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.
  14. 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.
  15. 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.
  16. Marcelo José Braga Nonnenberg & Ana Paula Avellar, 2014. "Exportações E Processos Inovativos: Umestudo Para América Latina E Europa Do Leste," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 105, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  17. 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.

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