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Are Innovation and Internationalization Related? An Analysis of European Countries

Author

Listed:
  • Andrea Filippetti
  • Marion Frenz
  • Grazia Ietto-Gillies

Abstract

This paper examines the relationship between countries' international profile and their innovation performance using data for 32 European countries. The overall contribution of the paper lies in: (a) an in-depth exploration of empirical correlations between innovation and several indicators of internationalization; and (b) the use of theoretical arguments—backed up by the literature—on why the observed correlations are not spurious but indicative of possible causality. Indicators of internationalization are considered with respect to each country as aggregate, to its technology-intensive industries only, and in relation to the share of its firms reporting international activities. On the basis of the empirical results, and the theoretical arguments presented, the paper suggests that underpinning the association is a virtuous (or vicious) circle: innovative firms are more successful in competing internationally and the exposure to alternative business and innovation contexts leads to innovation.

Suggested Citation

  • Andrea Filippetti & Marion Frenz & Grazia Ietto-Gillies, 2011. "Are Innovation and Internationalization Related? An Analysis of European Countries," Industry and Innovation, Taylor & Francis Journals, vol. 18(5), pages 437-459.
  • Handle: RePEc:taf:indinn:v:18:y:2011:i:5:p:437-459
    DOI: 10.1080/13662716.2011.583461
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    References listed on IDEAS

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    1. John Salt, 1997. "International Movements of the Highly Skilled," OECD Social, Employment and Migration Working Papers 3, OECD Publishing.
    2. Davide Castellani & Antonello Zanfei, 2006. "Multinational Firms, Innovation and Productivity," Books, Edward Elgar Publishing, number 3709.
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    Cited by:

    1. Grazia Ietto-Gillies, 2011. "Strategies of Transnational Companies in the Context of the Governance Systems of Nation-states," Chapters,in: Does Economic Governance Matter?, chapter 5 Edward Elgar Publishing.
    2. 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.
    3. Fabio Distefano & Giacomo Gambillara & Alberto Di Minin, 2016. "Extending the Innovation Paradigm: a Double ‘I’ Environment and Some Evidence from BRIC Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(1), pages 126-154, March.
    4. Andrea Filippetti & Marion Frenz & Grazia Ietto-Gillies, 2013. "The Role Of Internationalization As A Determinant Of Innovation Performance. An Analysis Of 42 Countries," Working Papers 10, Birkbeck Centre for Innovation Management Research, revised Jan 2013.
    5. repec:sgh:gosnar:y:2017:i:1:p:95-117 is not listed on IDEAS
    6. Parrilli, Mario Davide & Alcalde Heras, Henar, 2016. "STI and DUI innovation modes: Scientific-technological and context-specific nuances," Research Policy, Elsevier, vol. 45(4), pages 747-756.
    7. Joan Freixanet, 2014. "Innovation and internationalization: relationship and implications for management and public policy," International Journal of Entrepreneurial Knowledge, VSP Ostrava, a. s., vol. 2(2), pages 57-75, December.

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