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Are Innovation and Internationalization Related? An Analysis of European Countries

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  • Andrea Filippetti
  • Marion Frenz
  • Grazia Ietto-Gillies

Abstract

This paper examines the relationship between countries' international profile and their innovation performance using data for 32 European countries. The overall contribution of the paper lies in: (a) an in-depth exploration of empirical correlations between innovation and several indicators of internationalization; and (b) the use of theoretical arguments—backed up by the literature—on why the observed correlations are not spurious but indicative of possible causality. Indicators of internationalization are considered with respect to each country as aggregate, to its technology-intensive industries only, and in relation to the share of its firms reporting international activities. On the basis of the empirical results, and the theoretical arguments presented, the paper suggests that underpinning the association is a virtuous (or vicious) circle: innovative firms are more successful in competing internationally and the exposure to alternative business and innovation contexts leads to innovation.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Industry and Innovation.

Volume (Year): 18 (2011)
Issue (Month): 5 ()
Pages: 437-459

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Handle: RePEc:taf:indinn:v:18:y:2011:i:5:p:437-459

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Related research

Keywords: Innovation; internationalization; European Innovation Scoreboard;

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Cited by:
  1. Andrea Filippetti & Marion Frenz & Grazia Ietto-Gillies, 2013. "The Role Of Internationalization As A Determinant Of Innovation Performance. An Analysis Of 42 Countries," Working Papers 10, Birkbeck Centre for Innovation Management Research, revised Jan 2013.

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