Stepping In and Out of the International Market: Internationalisation of Technology-Oriented Firms in Germany and the UK
AbstractFor small high-tech firms international orientation is regarded as crucial for growth and long-term survival. Even newly founded technology based firms (NTBFs) are often internationally active shortly after their inception (?born globals?). However, in order to create jobs and have a sustainable influence on (macro)economic development, continuous growth of NTBFs is needed and research must focus on the continuous role of internationalisation. Based on longitudinal data, this paper examines empirically the long-term internationalisation behaviour of German and British technology-oriented firms founded between 1987 and 1996. Applying logit models, I am able to identify firm-specific success factors that influence the probability of entry into and exit from the international market. The results show, for instance, that firms can overcome high entry costs by acquiring firm-specific assets. Similarly, firm-specific resources prevent high-tech companies from exiting the international market. The strategic role of investment in R&D is stressed in particular by the data. --
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Bibliographic InfoPaper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 04-65.
Date of creation: 2004
Date of revision:
High technology industries; start-up; internationalisation;
Find related papers by JEL classification:
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- L80 - Industrial Organization - - Industry Studies: Services - - - General
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
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- Heger, Diana, 2004. "The Link Between Firms? Innovation Decision and the Business Cycle: An Empirical Analysis," ZEW Discussion Papers 04-85, ZEW - Zentrum fÃ¼r EuropÃ¤ische Wirtschaftsforschung / Center for European Economic Research.
- Fryges, Helmut, 2005. "The Change of Sales Modes in International Markets: Empirical Results for German and British High-Tech Firms," ZEW Discussion Papers 05-82, ZEW - Zentrum fÃ¼r EuropÃ¤ische Wirtschaftsforschung / Center for European Economic Research.
- Fryges, Helmut, 2004. "Productivity, Growth, and Internationalisation: The Case of German and British High Techs," ZEW Discussion Papers 04-79, ZEW - Zentrum fÃ¼r EuropÃ¤ische Wirtschaftsforschung / Center for European Economic Research.
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