Hidden champions - how young and small technology-oriented firms can attain high export-sales ratios
Determinants of a firm?s export-sales ratio (degree of internationalisation) are frequently discussed in the literature related to individual firms? export activities. Stylised facts show a positive relationship between firm size and firm age on the one hand and the firm?s export-sales ratio on the other hand. However, anecdotic evidence and recent empirical results revealed that it is not size or age per se that leads to a high export-sales ratio. This paper analyses the export-sales ratio of a sample of young technology-oriented firms in Germany and the UK. The empirical results confirm that neither youth nor smallness are necessarily an obstacle to realising a high degree of internationalisation. However, this requires that the firms possess firm-specific assets in order to overcome barriers to entry into the foreign market. These firm-specific assets may be acquired via conducting own R&D activities, buying novel technology from other companies, or by employing internationally experienced managers.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.zew.de/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jens Matthias Arnold & Katrin Hussinger, 2003.
"Export Behavior and Firm productivity in German Manufacturing. A Firm-Level Analysis,"
Development Working Papers
184, Centro Studi Luca d\'Agliano, University of Milano.
- Jens Matthias Arnold & Katrin Hussinger, 2005. "Export Behavior and Firm Productivity in German Manufacturing: A Firm-Level Analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 141(2), pages 219-243, July.
- Jens Matthias Arnold & Katrin Hussinger, 2004. "Export Behavior and Firm Productivity in German Manufacturing: A firm-level analysis," International Trade 0403007, EconWPA, revised 02 Nov 2004.
- Arnold, Jens Matthias & Hussinger, Katrin, 2004. "Export Behavior and Firm Productivity in German Manufacturing: A Firm-level Analysis," ZEW Discussion Papers 04-12, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- BARRIOS, Salvador & GÃ–RG, Holger & STROBL, Eric, .
"Explaining firms' export behaviour: R&D, spillovers and the destination market,"
CORE Discussion Papers RP
1654, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Salvador Barrios & Holger Goerg & Eric Strobl, 2003. "Explaining Firms' Export Behaviour: R&D, Spillovers and the Destination Market," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(4), pages 475-496, 09.
- Baldwin, Richard & Krugman, Paul, 1989.
"Persistent Trade Effects of Large Exchange Rate Shocks,"
The Quarterly Journal of Economics,
MIT Press, vol. 104(4), pages 635-54, November.
- Richard Baldwin & Paul R. Krugman, 1986. "Persistent Trade Effects of Large Exchage Rate Shocks," NBER Working Papers 2017, National Bureau of Economic Research, Inc.
- Daniel Sullivan, 1994. "Measuring the Degree of Internationalization of a Firm," Journal of International Business Studies, Palgrave Macmillan, vol. 25(2), pages 325-342, June.
- Andrew B. Bernard & J. Bradford Jensen, 2004.
"Why Some Firms Export,"
The Review of Economics and Statistics,
MIT Press, vol. 86(2), pages 561-569, May.
- Leslie E. Papke & Jeffrey M. Wooldridge, 1993.
"Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates,"
NBER Technical Working Papers
0147, National Bureau of Economic Research, Inc.
- Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-32, Nov.-Dec..
- Joseph Hilbe, 1993. "Generalized linear models," Stata Technical Bulletin, StataCorp LP, vol. 2(11).
- Andrew Bernard & Joachim Wagner, 2001.
"Export entry and exit by German firms,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer, vol. 137(1), pages 105-123, March.
- Ulrich Kaiser & Hans Christian Kongsted, 2004.
"True versus spurious state dependence in firm performance: the case of West German exports,"
CAM Working Papers
2004-04, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
- Kaiser, Ulrich & Kongsted, Hans Christian, 2004. "True Versus Spurious State Dependence in Firm Performance: The Case of West German Exports," ZEW Discussion Papers 04-81, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Joachim Wagner, 2003.
"Unobserved firm heterogeneity and the size-exports nexus: Evidence from German panel data,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer, vol. 139(1), pages 161-172, March.
- Wagner, Joachim, 2002. "Unobserved firm heterogeneity and the size-exports nexus : evidence from German panel data," HWWA Discussion Papers 194, Hamburg Institute of International Economics (HWWA).
- Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-64, September.
- Ernst Verwaal & Bas Donkers, 2002. "Firm Size and Export Intensity: Solving an Empirical Puzzle," Journal of International Business Studies, Palgrave Macmillan, vol. 33(3), pages 603-613, September.
- Gourieroux, Christian & Monfort, Alain & Trognon, Alain, 1984.
"Pseudo Maximum Likelihood Methods: Theory,"
Econometric Society, vol. 52(3), pages 681-700, May.
- Juan Manez & Maria Rochina & Juan Sanchis, 2004. "The decision to export: a panel data analysis for Spanish manufacturing," Applied Economics Letters, Taylor & Francis Journals, vol. 11(11), pages 669-673.
When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:5435. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.