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Do R&D Investments Affect Export Performance?

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Author Info

  • Valdemar Smith

    (The Aarhus School of Business)

  • Erik Strøjer Madsen

    (The Aarhus School of Business)

  • Mogens Dilling-Hansen

    (School of Business Administration, University of Aarhus)

Abstract

This paper analyses the role of R&D in the export behaviour of Danish firms. Export behaviour is defined as the likelihood of a firm being an exporter. In the theoretical part of the paper it is argued that export and being R&D active are endogenous with respect to each other, and an empirical model is formulated in order to estimate which factors affect the firm's export. It is argued that besides R&D, firm size, wages and a number of other firm-specific factors controlling for risks are highly important for the export performance. In the empirical part of the paper the model is tested on a sample of 3,500 Danish firms. Using a FIML estimation form in order to deal with endogeneity problems between the R&D and export decisions of the firms, the computation clearly verifies the theoretical model put forward. Moreover, R&D is an important factor for being an exporting firm.

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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics. Centre for Industrial Economics in its series CIE Discussion Papers with number 2002-09.

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Length: 14 pages
Date of creation: Dec 2002
Date of revision:
Handle: RePEc:kud:kuieci:2002-09

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Related research

Keywords: firm behaviour; export; R&D;

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References

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  1. Mogens Dilling-Hansen & Tor Eriksson & Erik Strøjer Madsen & Valdemar Smith, 1998. "Market Structure, Publicly and Privately Financed R&D Spending. Empirical Evidence for Denmark," CIE Discussion Papers 1998-20, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
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Citations

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Cited by:
  1. Tavassoli, Sam, 2013. "The Role of Product Innovation Output on Export Behavior of Firms," CIRCLE Electronic Working Papers 2013/38, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  2. Ainura Uzagalieva & Evžen Kocenda & Antonio Menezes, 2010. "Technological Imitation and Innovation in New European Union Markets," CESifo Working Paper Series 3039, CESifo Group Munich.
  3. Claudio Bravo-Ortega & Jose Miguel Benavente & Álvaro González, 2013. "Innovation, Exports and Productivity: Learning and Self selection in Chile," Working Papers wp371, University of Chile, Department of Economics.
  4. Stefan Lachenmaier; Ludger Woessmann, 2004. "Does Innovation Cause Exports? Evidence from Exogenous Innovation Impulses and Obstacles Using German Micro Data," Econometric Society 2004 Australasian Meetings 200, Econometric Society.
  5. Stefan Lachenmaier & Ludger Woessmann, 2004. "Does Innovation Cause Exports? Evidence from Exogenous Innovation Impulses and Obstacles," CESifo Working Paper Series 1178, CESifo Group Munich.
  6. Anh Ngoc Nguyen & Ngoc Quang Pham & Chuc Dinh Nguyen & Nhat Duc Nguyen, 2008. "Innovation and Export of Vietnam's SME Sector," Working Papers 09, Development and Policies Research Center (DEPOCEN), Vietnam.
  7. Abhigyan Sarkar, 2011. "An Analysis of Indian Export in Post-Liberalization Era," Annals - Economic and Administrative Series -, Faculty of Business and Administration, University of Bucharest, vol. 5(1), pages 207-220, December.

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