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Relative R&D intensity for exporters in an oligopolistic industry with spillovers

Author

Listed:
  • Juan A. Mañez

    (Department of Applied Economics II (Economic Structure) and ERI-CES, University of Valencia, Spain)

  • Rafael Moner Colonques

    (Department of Economic Analysis and ERI-CES, University of Valencia, Spain)

  • Juan A. Sanchis

    (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).)

  • Jose J. Sempere-Monerris

    (Department of Economic Analysis and ERI-CES, University of Valencia, Spain and CORE, UCL, Louvain-la-Neuve, Belgium)

Abstract

This paper explores the links between firms R&D investment decisions, and firms decisions on how much to sell at home and abroad in a heterogeneous-firm international oligopoly. The model provides analytical results that yield four testable hypotheses, which are empirically checked with data from the Spanish Survey on Business Strategies (ESEE) for the period 1992-2013. Our results confirm that exporters invest in R&D four times more than non-exporters in relative terms (Hypothesis H1). Our estimates confirm that past R&D intensity has a positive and significantly different effect on domestic and export outputs by exporters and that the effect on the rate of growth of exports is larger (H2). Econometric evidence suggests a positive and significant effect of appropriability on domestic sales, while a positive but non-significant effect on exports; thus partially confirming hypothesis H3. Finally, R&D efficiency measured as the propensity to obtain a patent or utility model is found to have a positive and significant effect on the rate of growth of exports, which confirms H4.

Suggested Citation

  • Juan A. Mañez & Rafael Moner Colonques & Juan A. Sanchis & Jose J. Sempere-Monerris, 2018. "Relative R&D intensity for exporters in an oligopolistic industry with spillovers," Working Papers 1807, Department of Applied Economics II, Universidad de Valencia.
  • Handle: RePEc:eec:wpaper:1807
    as

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    References listed on IDEAS

    as
    1. Bee Yan Aw & Mark J. Roberts & Daniel Yi Xu, 2011. "R&D Investment, Exporting, and Productivity Dynamics," American Economic Review, American Economic Association, vol. 101(4), pages 1312-1344, June.
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    9. Juan A. Máñez & María E. Rochina-Barrachina & Amparo Sanchis & Juan A. Sanchis, 2009. "THE ROLE OF SUNK COSTS IN THE DECISION TO INVEST IN R&D -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 57(4), pages 712-735, December.
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    Keywords

    International oligopoly; R&D; exports; knowledge spillovers.;

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