Internationalisation and the Innovation Activities of Services Firms
AbstractThis paper examines the relationship between the internationalisation of firms in services and their innovation performance. We use firm-level data over the period 2004- 2006 and estimate an augmented structural model to account for the role of foreign direct investment and exporting on the innovation performance of services firms in Ireland. Our research shows that in comparison to firms serving only the Irish market, domestic exporters were more likely to engage in R&D and innovation and they were more likely to be successful in terms of innovation output, over and above firm characteristics such as size and distance to the technology frontier. Further, we find that adoption of information and communication technologies was positively associated with innovation output. Co-operation with suppliers was positively associated with all innovation types, while knowledge flows from customers and from the government or public research institutes were positively linked to product innovation. Co-operation with universities was positively linked to innovation measured by patents.
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Bibliographic InfoPaper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP406.
Date of creation: Sep 2011
Date of revision:
Multinational Firms/Exporting/Knowledge Production/Services;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-01 (All new papers)
- NEP-CSE-2011-10-01 (Economics of Strategic Management)
- NEP-INO-2011-10-01 (Innovation)
- NEP-INT-2011-10-01 (International Trade)
- NEP-SBM-2011-10-01 (Small Business Management)
Please 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.:
- Yeaple, Stephen & Helpman, Elhanan & Melitz, Marc, 2004.
"Export versus FDI with Heterogeneous Firms,"
3229098, Harvard University Department of Economics.
- Criscuolo, Chiara & Haskel, Jonathan E. & Slaughter, Matthew J., 2010.
"Global engagement and the innovation activities of firms,"
International Journal of Industrial Organization,
Elsevier, vol. 28(2), pages 191-202, March.
- Chiara Criscuolo & Jonathan E. Haskel & Matthew J. Slaughter, 2005. "Global Engagement and the Innovation Activities of Firms," NBER Working Papers 11479, National Bureau of Economic Research, Inc.
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