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R&D, product innovation, and exporting: evidence from UK new technology based firms

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  • Panagiotis Ganotakis
  • James H. Love
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    Abstract

    We examine the relationship between R&D, product innovation, and exporting for a sample of new technology based firms (NTBFs) in the UK. Allowance is made for selection bias and for endogeneity between innovation and exporting. Product innovators are more likely to export, but conditional on entering export markets successful innovation does not increase subsequent export intensity. Lagged productivity is strongly associated with exporting, supporting the view that efficient firms are better able to overcome the barriers to entering export markets. We also find strong evidence of the importance of internal R&D and of supply-chain collaborations in fostering innovation, and that formal commercial collaborations can be important in overcoming the (information) sunk costs of entering export markets. The use of e-commerce does nothing to boost entry into export markets, but the intensity of its use is associated with increased export intensity. Copyright 2011 Oxford University Press 2010 All rights reserved, Oxford University Press.

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    File URL: http://hdl.handle.net/10.1093/oep/gpq027
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    Bibliographic Info

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

    Volume (Year): 63 (2011)
    Issue (Month): 2 (April)
    Pages: 279-306

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    Handle: RePEc:oup:oxecpp:v:63:y:2011:i:2:p:279-306

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    Cited by:
    1. 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].

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