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Global Engagement and the Innovation Activities of Firms

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Author Info
Chiara Criscuolo
Jonathan E. Haskel
Matthew J. Slaughter

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Abstract

Firms that export or, even more so, are part of a multinational enterprise tend to exhibit higher productivity than their purely domestic counterparts. To better understand this correlation, we incorporate the perspective of industrial organization that one of the main drivers of differences in productivity is differences in knowledge. We examine a new data set of several thousand U.K. enterprises covering all industries from 1994 through 2000. For each enterprise we have multiple detailed measures of knowledge outputs, knowledge investments, and sources of existing knowledge. We find that globally engaged firms do innovate more. But this is not just because globally engaged firms use more researchers. It is also because they learn more from more sources such as suppliers and customers, universities, and their intra-firm worldwide pool of information. We also find that the relative importance of knowledge sources varies systematically with the type of innovation.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11479.

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Date of creation: Jul 2005
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Handle: RePEc:nbr:nberwo:11479

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Find related papers by JEL classification:
F1 - International Economics - - Trade
F2 - International Economics - - International Factor Movements and International Business
O3 - Economic Development, Technological Change, and Growth - - Technological Change

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(explanations, 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.)

  1. David Law & Bob Buckle & Dean Hyslop, 2006. "Toward a Model of Firm Productivity Dynamics," Treasury Working Paper Series 06/11, New Zealand Treasury. [Downloadable!]
  2. Armando Silva & Ana Paula Africano & Oscar Afonso, 2009. "Which Portuguese firms are more innovative? The importance of multinationals and exporters," FEP Working Papers 326, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  3. Bee Yan Aw & Mark J. Roberts & Daniel Yi Xu, 2009. "R&D Investment, Exporting, and Productivity Dynamics," NBER Working Papers 14670, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Carol Corrado & Paul Lengermann & Larry Slifman, 2007. "The contribution of multinational corporations to U.S. productivity growth, 1977-2000," Finance and Economics Discussion Series 2007-21, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  5. Kolasa, Marcin, 2007. "How does FDI inflow affect productivity of domestic firms? The role of horizontal and vertical spillovers, absorptive capacity and competition," MPRA Paper 8673, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  6. Gustavo Crespi & Chiara Criscuolo & Jonathan E. Haskel & Matthew Slaughter, 2008. "Productivity Growth, Knowledge Flows, and Spillovers," NBER Working Papers 13959, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Joachim Wagner, 2006. "International Firm Activities and Innovation: Evidence from Knowledge Production Functions for German Firms," Working Paper Series in Economics 25, University of Lüneburg, Institute of Economics. [Downloadable!]
    Other versions:
  8. Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2006. "Transfer Pricing by U.S.-Based Multinational Firms," NBER Working Papers 12493, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. B. Atrostic, 2008. "Measuring U.S. innovative activity: business data at the U.S. Census Bureau," The Journal of Technology Transfer, Springer, vol. 33(2), pages 153-171, April. [Downloadable!] (restricted)
  10. Sofka, Wolfgang & Grimpe, Christoph, 2008. "Managing Search Strategies for Open Innovation: The Role of Environmental Munificence as well as Internal and External R&D," ZEW Discussion Papers 08-075, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  11. Holger Görg & Aoife Hanley, 2008. "Services Outsourcing and Innovation: An empirical investigation," Kiel Working Papers 1417, Kiel Institute for the World Economy. [Downloadable!]
  12. Sofka, Wolfgang & Aschhoff, Birgit, 2008. "Successful Patterns of Scientific Knowledge Sourcing: Mix and Match," ZEW Discussion Papers 08-033, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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  13. Aschhoff, Birgit & Sofka, Wolfgang, 2008. "Innovation on Demand: Can Public Procurement Drive Market Success of Innovations," ZEW Discussion Papers 08-052, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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  14. Fryges, Helmut & Wagner, Joachim, 2007. "Exports and Productivity Growth ? First Evidence from a Continuous Treatment Approach," ZEW Discussion Papers 07-032, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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  15. Irene Brambilla, 2006. "Multinationals, Technology, and the Introduction of Varieties of Goods," NBER Working Papers 12217, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  16. Grimpe, Christoph & Sofka, Wolfgang, 2007. "Search Patterns and Absorptive Capacity: A Comparison of Low- and High-Technology Firms from Thirteen European Countries," ZEW Discussion Papers 07-062, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  17. Joel Stiebale & Frank Reize, 2008. "The Impact of FDI on Innovation in Target Firms," Ruhr Economic Papers 0050, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
  18. Schmidt, Tobias & Sofka, Wolfgang, 2009. "Knowledge sourcing: legitimacy deficits for MNC subsidiaries?," Discussion Paper Series 1: Economic Studies 2009,09, Deutsche Bundesbank, Research Centre. [Downloadable!]
  19. Ilke Van Beveren & Hylke Vandenbussche, 2009. "Product and Process Innovation and the Decision to Export: Firm-level Evidence for Belgium," LICOS Discussion Papers 24709, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  20. Lederman, Daniel, 2009. "The business of product innovation : international empirical evidence," Policy Research Working Paper Series 4840, The World Bank. [Downloadable!]
  21. Christoph Grimpe & Ulrich Kaiser, 2008. "Gains and Pains from Contract Research: A Transaction and Firm-level Perspective," CIE Discussion Papers 2008-01, University of Copenhagen. Department of Economics. Centre for Industrial Economics. [Downloadable!]
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