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Which Portuguese firms are more innovative? The importance of multinationals and exporters

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  • Armando Silva

    ()
    (Faculdade de Economia, Universidade do Porto)

  • Ana Paula Africano

    ()
    (CEF.UP, Faculdade de Economia, Universidade do Porto)

  • Oscar Afonso

    ()
    (CEFUP, OBEGEF, Faculdade de Economia, Universidade do Porto)

Abstract

In this study we test the trade Global Engagement hypothesis in which firms more globally engaged – either multinationals or exporters – are more innovative. The test is applied to 4818 Portuguese enterprises´ data for the period 2002-2004 through the use of the fourth Portuguese Community Innovation Survey. We estimated several Knowledge Production Functions assuming that knowledge outputs result from the combination of some knowledge inputs with the flow of ideas coming from existing stock of knowledge. We found that more internationally exposed firms create more knowledge output, than their domestic counterparts; indeed, more globalized firms use more inputs and have the opportunity to use a larger stock of knowledge. Notwithstand, the observed superiority of more internationally exposed firms is also the result of their globalized nature, not directly connected with knowledge inputs or information flows.

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File URL: http://www.fep.up.pt/investigacao/workingpapers/09.06.05_wp326.pdf
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Bibliographic Info

Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 326.

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Length: 32 pages
Date of creation: Jun 2009
Date of revision:
Handle: RePEc:por:fepwps:326

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Keywords: Multinational firms; exporting; knowledge-production functions; Portugal;

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  1. Knut Blind & Andre Jungmittag, 2004. "Foreign Direct Investment, Imports and Innovations in the Service Industry," Review of Industrial Organization, Springer, vol. 25(2), pages 205-227, 06.
  2. Parente, Stephen L & Prescott, Edward C, 1994. "Barriers to Technology Adoption and Development," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 298-321, April.
  3. Veugelers, Reinhilde & Cassiman, Bruno, 1999. "Make and buy in innovation strategies: evidence from Belgian manufacturing firms," Research Policy, Elsevier, vol. 28(1), pages 63-80, January.
  4. Maria Luisa Mancusi, 2004. "International spillovers and absorptive capacity: a cross-country, cross-sector analysis based on European patents and citations," LSE Research Online Documents on Economics 6737, London School of Economics and Political Science, LSE Library.
  5. Roper, Stephen & Du, Jun & Love, James H., 2008. "Modelling the innovation value chain," Research Policy, Elsevier, vol. 37(6-7), pages 961-977, July.
  6. Ronna Cong, 2001. "Marginal effects of the tobit model," Stata Technical Bulletin, StataCorp LP, vol. 10(56).
  7. 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.
  8. Roberto Alvarez & Raymond Robertson, 2004. "Exposure to foreign markets and plant-level innovation: evidence from Chile and Mexico," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 13(1), pages 57-87.
  9. Silva, Maria José & Leitão, João, 2007. "Cooperation in Innovation Practices among Portuguese Firms: Do Universities Interface Innovative Advances?," MPRA Paper 5215, University Library of Munich, Germany.
  10. Cassey Lee & Lee Chew ging, 2007. "SME Innovation in the Malaysian Manufacturing Sector," Economics Bulletin, AccessEcon, vol. 12(30), pages 1-12.
  11. Lederman, Daniel, 2009. "The business of product innovation : international empirical evidence," Policy Research Working Paper Series 4840, The World Bank.
  12. Silva, Maria José & Leitão, João, 2007. "What Determines the Entrepreneurial Innovative Capability of Portuguese Industrial Firms?," MPRA Paper 5216, University Library of Munich, Germany.
  13. Pavitt, Keith, 1982. "R&D, patenting and innovative activities : A statistical exploration," Research Policy, Elsevier, vol. 11(1), pages 33-51, February.
  14. Braga, Helson & Willmore, Larry, 1991. "Technological Imports and Technological Effort: An Analysis of Their Determinants in Brazilian Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 39(4), pages 421-32, June.
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