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Globalisation of Innovation in SMEs: Why They Go Abroad and What They Bring Back Home

Author

Listed:
  • Christian Rammer
  • Anja Schmiele

Abstract

This paper investigates the drivers and the effects of the internationalisation of innovation activities in SMEs based on a large data set of German firms. We look at different stages of the innovation process (R&D, design, production and sales of new products, and implementation of new processes) and explore the role of internal resources, home market competition and innovation-related location advantages for an SME’s decision to engage in innovation activities abroad. By linking international innovation activities to firm growth in the home market we try to identify likely internationalisation effects at the firm level. The results show that export experience and experience in knowledge protection are highly important for international innovation activities of SMEs. High innovation costs at home stimulate internationalisation of non-R&D innovation activities, and shortage of qualified labour expels production of new products. R&D activities abroad and exports of new products spur firm growth in the home market.COMMENT: Axel Mangelsdorf

Suggested Citation

  • Christian Rammer & Anja Schmiele, 2008. "Globalisation of Innovation in SMEs: Why They Go Abroad and What They Bring Back Home," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 59(Supplemen), pages 173-212.
  • Handle: RePEc:aeq:aeqaeq:v59_y2008_is_q5_p173-212
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    Citations

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    Cited by:

    1. Rammer, Christian & Bethmann, Nicola, 2009. "Schwerpunktbericht zur Innovationserhebung 2008: Innovationspartnerschaften - Schutz und Verletzung von intellektuellem Eigentum," ZEW Dokumentationen 09-01, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Martin Berger & Heinz Hollenstein, 2012. "Determinants of Equity-based and Co-operative Foreign R&D and Impact on the Parent Firm’s Performance," FIW Working Paper series 097, FIW.
    3. Dachs, Bernhard, 2017. "Internationalisation of R&D: A Review of Drivers, Impacts, and new Lines of Research," MPRA Paper 83367, University Library of Munich, Germany.
    4. repec:rss:jnljbs:v2i4p4 is not listed on IDEAS
    5. Stefano Bresciani & Alberto Ferraris & Manlio Del Giudice, 2016. "R&D internationalization in asian developing countries: evidence from european multinationals," MERCATI E COMPETITIVITÀ, FrancoAngeli Editore, vol. 2016(3), pages 25-44.
    6. Spyros Arvanitis & Heinz Hollenstein, 2010. "How Do Different Motives for R&D Investment in Foreign Locations Affect Domestic Firm Performance?," KOF Working papers 10-258, KOF Swiss Economic Institute, ETH Zurich.
    7. Spyros Arvanitis & Heinz Hollenstein, 2010. "How Do Different Motives for R&D Investment in Foreign Locations Affect Domestic Firm Performance? An Analysis Based on Swiss Panel Micro Data," WIFO Working Papers 375, WIFO.

    More about this item

    Keywords

    Internationalisation of Innovation; Globalisation; SMEs; Effects of Innovation; Absorptive Capacities; Market Structure.;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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