R&D, Innovation and Exporting
Abstract
This study considers the determinants of whether a firm exports, undertakes R&D and/or innovates, and, in particular, the contemporaneous links between these variables using three waves of the UK Community Innovation Survey (CIS). Where appropriate, an instrumental variables procedure is employed to overcome problems of endogeneity. The results show that in both manufacturing and services, being involved in exporting increased the probability that an establishment was engaged in spending on R&D. Spending on R&D in manufacturing had a much larger impact on the probability of exporting which implies that spending on R&D was not simply to boost the probability of producing new goods and services, but also to improve the establishment's knowledge assets which would in turn help it break down barriers to international markets. In non-manufacturing, spending on R&D increased the probability of innovating but had no significant impact on whether the establishment exported; rather, innovating increased the probability of exporting. Exporting had no direct impact on whether innovation occurred in either sector. Given the key role of R&D, innovation and exporting in determining productivity, it is important that government understands these complex interactions between R&D, innovation and exporting and takes advantage of them when devising and implementing productivity-enhancing policies at the micro-level.Download Info
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Paper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0073.Length:
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:cep:sercdp:0073
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Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp
Related research
Keywords: R&D; innovation; exporting; endogeneity;Find related papers by JEL classification:
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-26 (All new papers)
- NEP-CSE-2011-03-26 (Economics of Strategic Management)
- NEP-INO-2011-03-26 (Innovation)
- NEP-INT-2011-03-26 (International Trade)
- NEP-SBM-2011-03-26 (Small Business Management)
- NEP-TID-2011-03-26 (Technology & Industrial Dynamics)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Miguel León-Ledesma, 2005.
"Exports, Product Differentiation and Knowledge Spillovers,"
Open Economies Review,
Springer, vol. 16(4), pages 363-379, October.
- Miguel Leon-Ledesma, 2002. "Exports, Product Differentiation and Knowledge Spillovers," Studies in Economics 0206, Department of Economics, University of Kent.
- Van Beveren, Ilke, 2010.
"Product and process innovation and firms' decision to export,"
Open Access publications from Université catholique de Louvain
info:hdl:2078.1/32042, Université catholique de Louvain.
- Ilke Van Beveren & Hylke Vandenbussche, 2010. "Product and process innovation and firms' decision to export," Journal of Policy Reform, Taylor and Francis Journals, vol. 13(1), pages 3-24.
- Ilke Van Beveren & Hylke Vandenbussche, 2010. "Product and process innovation and firms' decision to export," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 13(1), pages 3-24.
- Vanbeveren, Ilke & Vandenbussche, Hylke, 2010. "Product and Process Innovation and Firms’ decision to Export," CEPR Discussion Papers 7846, C.E.P.R. Discussion Papers.
- Mary O'Mahony & Marcel P. Timmer, 2009. "Output, Input and Productivity Measures at the Industry Level: The EU KLEMS Database," Economic Journal, Royal Economic Society, vol. 119(538), pages F374-F403, 06.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- 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.
- Lööf, Hans & Nabavi, Pardis, 2013. "Learning and Productivity of Swedish Exporting Firms: The importance of Innovation Efforts and the Geography of Innovation," Working Paper Series in Economics and Institutions of Innovation 296, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
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