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Stepping In and Out of the International Market: Internationalisation of Technology-Oriented Firms in Germany and the UK

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  • Fryges, Helmut

Abstract

For small high-tech firms international orientation is regarded as crucial for growth and long-term survival. Even newly founded technology based firms (NTBFs) are often internationally active shortly after their inception (?born globals?). However, in order to create jobs and have a sustainable influence on (macro)economic development, continuous growth of NTBFs is needed and research must focus on the continuous role of internationalisation. Based on longitudinal data, this paper examines empirically the long-term internationalisation behaviour of German and British technology-oriented firms founded between 1987 and 1996. Applying logit models, I am able to identify firm-specific success factors that influence the probability of entry into and exit from the international market. The results show, for instance, that firms can overcome high entry costs by acquiring firm-specific assets. Similarly, firm-specific resources prevent high-tech companies from exiting the international market. The strategic role of investment in R&D is stressed in particular by the data.

Suggested Citation

  • Fryges, Helmut, 2004. "Stepping In and Out of the International Market: Internationalisation of Technology-Oriented Firms in Germany and the UK," ZEW Discussion Papers 04-65, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:2354
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    Citations

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    Cited by:

    1. Fryges, Helmut, 2005. "The Change of Sales Modes in International Markets: Empirical Results for German and British High-Tech Firms," ZEW Discussion Papers 05-82, ZEW - Leibniz Centre for European Economic Research.
    2. Metzger, Georg & Rammer, Christian, 2009. "Unternehmensdynamik in forschungs- und wissensintensiven Wirtschaftszweigen in Deutschland," Studien zum deutschen Innovationssystem 5-2009, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.
    3. Heger, Diana, 2004. "The Link Between Firms? Innovation Decision and the Business Cycle: An Empirical Analysis," ZEW Discussion Papers 04-85, ZEW - Leibniz Centre for European Economic Research.
    4. Cowling, Marc & Fryges, Helmut & Licht, Georg & Murray, Gordon, 2007. "The survival and growth of 'adolescent' high-tech firms in Germany and the UK, 1997-2003," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 110480.
    5. Fryges, Helmut, 2004. "Productivity, Growth, and Internationalisation: The Case of German and British High Techs," ZEW Discussion Papers 04-79, ZEW - Leibniz Centre for European Economic Research.
    6. Rammer, Christian & Metzger, Georg, 2010. "Unternehmensdynamik in der Wissenswirtschaft in Deutschland und im internationalen Vergleich," Studien zum deutschen Innovationssystem 10-2010, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.

    More about this item

    Keywords

    High technology industries; start-up; internationalisation;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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