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R&D, innovation and exporting

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  • Harris, Richard
  • Moffat, John

Abstract

This study considers the determinants of whether a firm exports, undertakes R&D and/or innovates, and, in particular, the contemporaneous links between these variables using three waves of the UK Community Innovation Survey (CIS). Where appropriate, an instrumental variables procedure is employed to overcome problems of endogeneity. The results show that in both manufacturing and services, being involved in exporting increased the probability that an establishment was engaged in spending on R&D. Spending on R&D in manufacturing had a much larger impact on the probability of exporting which implies that spending on R&D was not simply to boost the probability of producing new goods and services, but also to improve the establishment’s knowledge assets which would in turn help it break down barriers to international markets. In non-manufacturing, spending on R&D increased the probability of innovating but had no significant impact on whether the establishment exported; rather, innovating increased the probability of exporting. Exporting had no direct impact on whether innovation occurred in either sector. Given the key role of R&D, innovation and exporting in determining productivity, it is important that government understands these complex interactions between R&D, innovation and exporting and takes advantage of them when devising and implementing productivity-enhancing policies at the micro-level.

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  • Harris, Richard & Moffat, John, 2011. "R&D, innovation and exporting," LSE Research Online Documents on Economics 33593, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:33593
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    1. 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.
    2. Rodil, Óscar & Vence, Xavier & Sánchez, María del Carmen, 2016. "The relationship between innovation and export behaviour: The case of Galician firms," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 248-265.
    3. Asongu, Simplice, 2017. "Mobile Phone Innovation and Technology-driven Exports in Sub-Saharan Africa," MPRA Paper 84040, University Library of Munich, Germany, revised May 2017.
    4. Roberto Álvarez & Mario Canales, 2017. "Impacto de los Obstáculos al Conocimiento en la Innovación de las Empresas Chilenas," Working Papers wp452, University of Chile, Department of Economics.
    5. Rehman, Naqeeb Ur, 2016. "Innovation Performance of Chilean SMEs: A Bivariate Probit Analysis," MPRA Paper 68827, University Library of Munich, Germany.
    6. Maja Savic & Helen Lawton Smith & Ioannis Bournakis, 2014. "The effect of external knowledge sources and their geography on innovation in Knowledge Intensive Business Services (KIBS) SMEs; some Implications for de-industrialised regions in the UK," Working Papers 18, Birkbeck Centre for Innovation Management Research, revised Aug 2014.
    7. Jaan Masso & Priit Vahter, 2012. "The link between innovation and productivity in Estonia's services sector," The Service Industries Journal, Taylor & Francis Journals, vol. 32(16), pages 2527-2541, December.
    8. Dario Guarascio & Mario Pianta & Francesco Bogliacino, 2016. "Export, R&D and new products. a model and a test on European industries," Journal of Evolutionary Economics, Springer, vol. 26(4), pages 869-905, October.
    9. Christopher F. Baum & Mustafa Caglayan & Oleksandr Talavera, 2016. "R&D Expenditures and Geographical Sales Diversification," Manchester School, University of Manchester, vol. 84(2), pages 197-221, March.
    10. repec:eee:tefoso:v:122:y:2017:i:c:p:128-138 is not listed on IDEAS
    11. 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.
    12. Bettina Becker, 2013. "The Determinants of R&D Investment: A Survey of the Empirical Research," Discussion Paper Series 2013_09, Department of Economics, Loughborough University, revised Sep 2013.
    13. Song, ChiUng & Oh, Wankeun, 2015. "Determinants of innovation in energy intensive industry and implications for energy policy," Energy Policy, Elsevier, vol. 81(C), pages 122-130.
    14. Naqeeb Ur Rehman, 2017. "Self-selection and learning-by-exporting hypotheses: micro-level evidence," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 133-160, April.
    15. Simplice Asongu & Ndemaze Asongu, 2017. "The role of mobile phones in governance-driven technology exports in Sub-Saharan Africa," Working Papers 17/036, African Governance and Development Institute..
    16. Vasić Jelena & Kecman Nataša & Mladenović Igor, 2016. "Research and Development Investment as Determinant of International Competitiveness and Economic Growth in Eu28 and Serbia," Economic Themes, De Gruyter Open, vol. 54(2), pages 195-216, June.
    17. Lööf, Hans & Nabavi, Pardis, 2013. "Learning and Productivity of Swedish Exporting Firms: The importance of Innovation Efforts and the Geography of Innovation," Working Paper Series in Economics and Institutions of Innovation 296, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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