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R&D and the Export Decision of New Firms

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  • Charles Braymen

    ()
    (Department of Economics, Kansas State University, 327 Waters Hall, Manhattan, KS 66506, USA)

  • Kristie Briggs

    ()
    (Department of Economics and Finance, Creighton University, 2500 California Plaza, Omaha, NE 68178, USA)

  • Jessica Boulware

    ()
    (Department of Economics, Kansas State University, 327 Waters Hall, Manhattan, KS 66506, USA)

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    Abstract

    Recent literature on the firm-level decision to export has focused on identifying factors that influence the export decision by firms regardless of the number of years they have been in operation. This article, alternatively, examines the factors that influence new firms to export within the first four years of operation. The results support two key findings that have commonly emerged from entrepreneurial case studies: (1) There is a positive link between research and development (R&D) and early internationalization, and (2) international ties of managers, as is evidenced by the effect of foreign-born owners, positively impact the firm's decision to export. The former result is the emphasis of this article. In addition, we find that innovation spillovers from neighboring firms impact the export decision of new firms that engage in R&D.

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    Bibliographic Info

    Article provided by Southern Economic Association in its journal Southern Economic Journal.

    Volume (Year): 78 (2011)
    Issue (Month): 1 (July)
    Pages: 191-210

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    Handle: RePEc:sej:ancoec:v:78:1:y:2011:p:191-210

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