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Do R&D Investments Affect Export Performance?

  • Valdemar Smith

    (The Aarhus School of Business)

  • Erik Strøjer Madsen

    (The Aarhus School of Business)

  • Mogens Dilling-Hansen

    (School of Business Administration, University of Aarhus)

This paper analyses the role of R&D in the export behaviour of Danish firms. Export behaviour is defined as the likelihood of a firm being an exporter. In the theoretical part of the paper it is argued that export and being R&D active are endogenous with respect to each other, and an empirical model is formulated in order to estimate which factors affect the firm's export. It is argued that besides R&D, firm size, wages and a number of other firm-specific factors controlling for risks are highly important for the export performance. In the empirical part of the paper the model is tested on a sample of 3,500 Danish firms. Using a FIML estimation form in order to deal with endogeneity problems between the R&D and export decisions of the firms, the computation clearly verifies the theoretical model put forward. Moreover, R&D is an important factor for being an exporting firm.

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Paper provided by University of Copenhagen. Department of Economics. Centre for Industrial Economics in its series CIE Discussion Papers with number 2002-09.

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Length: 14 pages
Date of creation: Dec 2002
Date of revision:
Handle: RePEc:kud:kuieci:2002-09
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  1. Mogens Dilling-Hansen & Tor Eriksson & Erik Strøjer Madsen & Valdemar Smith, 1998. "Market Structure, Publicly and Privately Financed R&D Spending. Empirical Evidence for Denmark," CIE Discussion Papers 1998-20, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
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