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R&D and exporting: A comparison of British and Irish firms

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  • Sourafel Girma
  • Holger Görg
  • Aoife Hanley

Abstract

This paper investigates the two way relationship between R&D and export activity. In particular, we concern ourselves with the question whether R&D stimulates exports and, perhaps more importantly, whether export activity leads to increasing innovative activity in terms of R&D (learning by exporting). We use two unique firm level databases for Great Britain and the Republic of Ireland and compare the results for these two countries. We find that previous exporting experience enhances the innovative capability of Irish firms. Conversely, no strong learning-by-exporting effects are found for British firms. Arguably the differences between Ireland and Britain are attributable to different, cross-country exporting patterns where Irish firms have a greater interface with OECD markets.

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File URL: http://www.nottingham.ac.uk/gep/documents/papers/2007/07-18.pdf
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Bibliographic Info

Paper provided by University of Nottingham, GEP in its series Discussion Papers with number 07/18.

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Handle: RePEc:not:notgep:07/18

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Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
Phone: (44) 0115 951 5620
Fax: (0115) 951 4159
Web page: http://www.nottingham.ac.uk/economics/
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Related research

Keywords: learning effects; exporting; innovation; R&D;

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References

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Citations

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Cited by:
  1. Sourafel Girma & Yundan Gong & Holger Gˆrg & Zhihong Yu, 2009. "Can Production Subsidies Explain China's Export Performance? Evidence from Firm-level Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 111(4), pages 863-891, December.
  2. Kostevc, Crt & Damijan, Jože, 2008. "Causal Link between Exporting and Innovation Activity. Evidence from Slovenian Firms," Papers DYNREG22, Economic and Social Research Institute (ESRI).
  3. 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.
  4. Jože.P.Damijan & Črt. Kostevc, 2010. "Learning from trade through innovation: Causal link between imports, exports and innovation in Spanish microdata," LICOS Discussion Papers 26410, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  5. Chang, C-L. & Chen, S-P. & McAleer, M.J., 2010. "Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents," Econometric Institute Report EI 2010-55, Erasmus University Rotterdam, Econometric Institute.
  6. Alfons PALANGKARAYA, 2012. "The Link between Innovation and Export: Evidence from Australiafs Small and Medium Enterprises," Working Papers DP-2012-08, Economic Research Institute for ASEAN and East Asia (ERIA).
  7. Mohammad Movahedi & Olivier Gaussens, 2011. "Innovation, productivité et exportation : Y-a-t-il un effet d'auto-sélection consciente? Une étude empirique sur les PMI de basse-Normandie," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201123, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  8. Fu, Dahai & Wu, Yanrui & Tang, Yihong, 2010. "Does innovation matter for Chinese hightech exports? a firm-level analysis," MPRA Paper 30012, University Library of Munich, Germany.
  9. Movahedi, Mohammad & Gaussens, Olivier, 2011. "Innovation, productivity, and export: Evidence from SMEs in Lower Normandy, France," MPRA Paper 40443, University Library of Munich, Germany, revised 07 Jun 2012.
  10. Huang, Can & Arundel, Anthony & Hollanders, Hugo, 2010. "How Firms Innovate: R&D, Non-R&D, and Technology Adoption," UNU-MERIT Working Paper Series 027, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
  11. David Aristei & Davide Castellani & Chiara Franco, 2011. "Firms' exporting and importing activities: is there a two-way relationship?," Quaderni del Dipartimento di Economia, Finanza e Statistica 99/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  12. Nakhoda, Aadil, 2012. "The effect of foreign competition on product switching activities: A firm level analysis," MPRA Paper 39167, University Library of Munich, Germany.
  13. Claudio Bravo-Ortega & Jose Miguel Benavente & Álvaro González, 2012. "Innovation, Exports and Productivity: Learning and Self selection in Chile," Working Papers wp371, University of Chile, Department of Economics.
  14. Aïda Caldera Sanchez, 2009. "Innovation and Exporting: Edvidence from Spanish Manufacturing Firms," Working Papers ECARES 2009_014, ULB -- Universite Libre de Bruxelles.
  15. Joze P. Damijan & Crt Kostevc & Saso Polanec, 2008. "From innovation to exporting or vice versa? Causal link between innovation activity and exporting in Slovenian microdata," LICOS Discussion Papers 20408, LICOS - Centre for Institutions and Economic Performance, KU Leuven.

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