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R&D, product innovation, and exporting: evidence from UK new technology based firms

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  • Panagiotis Ganotakis
  • James H. Love

Abstract

We examine the relationship between R&D, product innovation, and exporting for a sample of new technology based firms (NTBFs) in the UK. Allowance is made for selection bias and for endogeneity between innovation and exporting. Product innovators are more likely to export, but conditional on entering export markets successful innovation does not increase subsequent export intensity. Lagged productivity is strongly associated with exporting, supporting the view that efficient firms are better able to overcome the barriers to entering export markets. We also find strong evidence of the importance of internal R&D and of supply-chain collaborations in fostering innovation, and that formal commercial collaborations can be important in overcoming the (information) sunk costs of entering export markets. The use of e-commerce does nothing to boost entry into export markets, but the intensity of its use is associated with increased export intensity. Copyright 2011 Oxford University Press 2010 All rights reserved, Oxford University Press.

Suggested Citation

  • Panagiotis Ganotakis & James H. Love, 2011. "R&D, product innovation, and exporting: evidence from UK new technology based firms," Oxford Economic Papers, Oxford University Press, vol. 63(2), pages 279-306, April.
  • Handle: RePEc:oup:oxecpp:v:63:y:2011:i:2:p:279-306
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    Citations

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    Cited by:

    1. Armando Garcia Pires, 2014. "Beyond Trade Costs: Firms’ Endogenous Access to International Markets," Journal of Industry, Competition and Trade, Springer, vol. 14(2), pages 229-257, June.
    2. Liangfeng Hao & Bin Qiu & Lisette Cervantes, 2016. "Does Firms’ Innovation Promote Export Growth Sustainably?—Evidence from Chinese Manufacturing Firms," Sustainability, MDPI, Open Access Journal, vol. 8(11), pages 1-20, November.
    3. Wang, Yuandi & Ning, Lutao & Prevezer, Martha, 2015. "Technological diversification in China from 1986 to 2011: Evidence from patent data," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 54-66.
    4. Rehman, Naqeeb Ur, 2015. "Does Internal and External R&D Affect SMEs Innovation Performance? Micro Level Evidence from India and Pakistan," EconStor Preprints 113229, ZBW - German National Library of Economics.
    5. Stefano Denicolai & Birgit Hagen & Alessia Pisoni, 2015. "Be international or be innovative? Be both? The role of the entrepreneurial profile," Journal of International Entrepreneurship, Springer, vol. 13(4), pages 390-417, December.
    6. repec:eee:wdevel:v:97:y:2017:i:c:p:79-101 is not listed on IDEAS
    7. repec:eee:chieco:v:46:y:2017:i:s:p:s50-s64 is not listed on IDEAS
    8. Dosi, Giovanni & Grazzi, Marco & Moschella, Daniele, 2015. "Technology and costs in international competitiveness: From countries and sectors to firms," Research Policy, Elsevier, vol. 44(10), pages 1795-1814.
    9. Love, James H. & Roper, Stephen & Zhou, Ying, 2016. "Experience, age and exporting performance in UK SMEs," International Business Review, Elsevier, vol. 25(4), pages 806-819.
    10. Di Ubaldo, Mattia, 2016. "Firms and trade in downturns," Economics PhD Theses 0416, Department of Economics, University of Sussex.
    11. Castellani, Davide & Fassio, Claudio, 2017. "Export innovation: The role of new imported inputs and multinationality," Papers in Innovation Studies 2017/16, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    12. Rehman, Naqeeb Ur, 2016. "Innovation Performance of Chilean SMEs: A Bivariate Probit Analysis," MPRA Paper 68827, University Library of Munich, Germany.
    13. Spyros Arvanitis & Areti Gkypali & Kostas Tsekouras, 2014. "Knowledge Base, Exporting Activities, Innovation Openness and Innovation Performance," KOF Working papers 14-361, KOF Swiss Economic Institute, ETH Zurich.
    14. OA Carboni & G. Medda, 2017. "Do Investment and Innovation Boost Export? An Analysis on European Firms," Working Paper CRENoS 201708, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    15. Lewandowska, Małgorzata Stefania & Szymura-Tyc, Maja & Gołębiowski, Tomasz, 2016. "Innovation complementarity, cooperation partners, and new product export: Evidence from Poland," Journal of Business Research, Elsevier, vol. 69(9), pages 3673-3681.
    16. Fulvio Castellacci, 2014. "Service Firms Heterogeneity, International Collaborations and Export Participation," Journal of Industry, Competition and Trade, Springer, vol. 14(2), pages 259-285, June.
    17. McGuirk, Helen & Lenihan, Helena & Hart, Mark, 2015. "Measuring the impact of innovative human capital on small firms’ propensity to innovate," Research Policy, Elsevier, vol. 44(4), pages 965-976.
    18. Lutao Ning & Martha Prevezer & Yuandi Wang, 2014. "Technological diversification in China: Based on Chinese patent analysis during 1986-2011," Working Papers 55, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    19. Marcelo José Braga Nonnenberg & Ana Paula Avellar, 2014. "Exportações E Processos Inovativos: Umestudo Para América Latina E Europa Do Leste," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 105, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
    20. repec:kap:sbusec:v:49:y:2017:i:3:d:10.1007_s11187-017-9844-z is not listed on IDEAS
    21. Martijn A. Boermans & Hein Roelfsema, 2016. "Small firm internationalization, innovation, and growth," International Economics and Economic Policy, Springer, vol. 13(2), pages 283-296, April.
    22. ALARCON-OSUNA, Moises Alejandro & DIAZ-PEREZ, Claudia del Carmen, 2014. "The Technology Based Sectors In Mexico: An Analysis For The Firm Size And The Production Scale," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 23(4), pages 40-60.
    23. Rehman, Naqeeb Ur, 2016. "Does Internal and External Research and Development Affect Innovation of Small and Medium-Sized Enterprises? Evidence from India and Pakistan," ADBI Working Papers 577, Asian Development Bank Institute.
    24. Liu, Rebecca & Rammer, Christian, 2016. "The contribution of different public innovation funding programs to SMEs' export performance," ZEW Discussion Papers 16-078, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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