Drivers and Effects of Internationalising Innovation by SMEs
This paper investigates the drivers and effects of the internationalisation of innovation activities in SMEs based on a large data set of German firms covering the period 2002-2007. We look at different stages of the innovation process (R&D, design, production and sales of new products, and implementation of new processes) and explore the role of internal resources, home market competition and innovationrelated location advantages for an SME's decision to engage in innovation activities abroad. By linking international innovation activities to firm growth in the home market we try to identify likely internationalisation effects at the firm level. The results show that export experience and experience in knowledge protection are highly important for international innovation activities of SMEs. Fierce home market competition turns out to be rather an obstacle than a driver. High innovation costs stimulate internationalisation of non-R&D innovation activities, and shortage of qualified labour expels production of new products. R&D activities abroad and exports of new products spur firm growth in the home market while there are no negative effects on home market growth from shifting production of new products abroad.
|Date of creation:||2008|
|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.:
- repec:ner:tilbur:urn:nbn:nl:ui:12-5662246 is not listed on IDEAS
- Mezias, John M., 2002. "How to identify liabilities of foreignness and assess their effects on multinational corporations," Journal of International Management, Elsevier, vol. 8(3), pages 265-282.
- Heinz Hollenstein, 2005. "Determinants of International Activities: Are SMEs Different?," Small Business Economics, Springer, vol. 24(5), pages 431-450, 06.
- Sumantra Ghoshal & Christopher A Bartlett, 1988. "Creation, Adoption and Diffusion of Innovations by Subsidiaries of Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan, vol. 19(3), pages 365-388, September.
- Pedersen, Torben & Petersen, Bent, 1998. "Explaining gradually increasing resource commitment to a foreign market," International Business Review, Elsevier, vol. 7(5), pages 483-501, October.
- Bruno Van Pottelsberghe & Dominique Guellec, 2001.
"The internationalisation of technology analysed with patent data,"
ULB Institutional Repository
2013/6223, ULB -- Universite Libre de Bruxelles.
- Guellec, Dominique & Pottelsberghe de la Potterie, Bruno v., 2001. "The internationalisation of technology analysed with patent data," Research Policy, Elsevier, vol. 30(8), pages 1253-1266, October.
- Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September.
- Rajneesh Narula & Antonello Zanfei, 2003. "Globalisation of Innovation The Role of Multinational Enterprises," DRUID Working Papers 03-15, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Beise, Marian, 2004. "Lead markets: country-specific drivers of the global diffusion of innovations," Research Policy, Elsevier, vol. 33(6-7), pages 997-1018, September.
- Matthias Almus, 2002. "What characterizes a fast-growing firm?," Applied Economics, Taylor & Francis Journals, vol. 34(12), pages 1497-1508.
- John Cantwell & Lucia Piscitello, 2005. "Recent Location of Foreign-owned Research and Development Activities by Large Multinational Corporations in the European Regions: The Role of Spillovers and Externalities," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 1-16.
- Ito, Banri & Wakasugi, Ryuhei, 2007. "What factors determine the mode of overseas R&D by multinationals? Empirical evidence," Research Policy, Elsevier, vol. 36(8), pages 1275-1287, October.
- Heinz Hollenstein, 2008.
"Characteristics of Foreign R&D Strategies of Swiss Firms. Implications for Policy,"
WIFO Working Papers
- Heinz Hollenstein & Benjamin Jung, 2008. "Characteristics of Foreign R&D Strategies of Swiss Firms: Implications for Policy," FIW Working Paper series 015, FIW.
- MacGarvie, Megan, 2005. "The determinants of international knowledge diffusion as measured by patent citations," Economics Letters, Elsevier, vol. 87(1), pages 121-126, April.
- Bas, Christian Le & Sierra, Christophe, 2002. "'Location versus home country advantages' in R&D activities: some further results on multinationals' locational strategies," Research Policy, Elsevier, vol. 31(4), pages 589-609, May.
- Harvey, Michael & Novicevic, Milorad M., 2000. "Staffing global marketing positions: What we don't know can make a difference," Journal of World Business, Elsevier, vol. 35(1), pages 80-94, April.
- Heger, Diana & Kraft, Kornelius, 2008. "A Test of the Quality of Concentration Indices," ZEW Discussion Papers 08-072, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Dunning, John H., 1994. "Multinational enterprises and the globalization of innovatory capacity," Research Policy, Elsevier, vol. 23(1), pages 67-88, January.
- Ebling, Günther & Janz, Norbert, 1999. "Export and innovation activities in the German service sector: empirical evidence at the firm level," ZEW Discussion Papers 99-53, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Falk, Martin, 1999. "Technological innovations and the expected demand for skilled labour at the firm level," ZEW Discussion Papers 99-59, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Peter W Liesch & Gary A Knight, 1999. "Information Internalization and Hurdle Rates in Small and Medium Enterprise Internationalization," Journal of International Business Studies, Palgrave Macmillan, vol. 30(2), pages 383-394, June.
- Brouwer, Erik & Kleinknecht, Alfred & Reijnen, Jeroen O N, 1993. "Employment Growth and Innovation at the Firm Level," Journal of Evolutionary Economics, Springer, vol. 3(2), pages 153-59, May.
- Rian Beise-Zee & Christian Rammer, 2006.
"Local User-Producer Interaction in Innovation and Export Performance of Firms,"
Small Business Economics,
Springer, vol. 27(2), pages 207-222, October.
- Rammer, Christian & Beise, Marian, 2003. "Local User-Producer Interaction in Innovation and Export Performance of Firms," ZEW Discussion Papers 03-51, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Cassiman, Bruno & Veugelers, Reinhilde, 2001.
"Foreign subsidiaries as channel of international technology diffusion. Some direct firm level evidence from Belgium,"
IESE Research Papers
D/441, IESE Business School.
- Veugelers, Reinhilde & Cassiman, Bruno, 2004. "Foreign subsidiaries as a channel of international technology diffusion: Some direct firm level evidence from Belgium," European Economic Review, Elsevier, vol. 48(2), pages 455-476, April.
- Christian Weikl & Reinhold Grotz, 1999. "Transnational technology transfer of SMEs and its impact on regional development," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 11(4), pages 301-315, October.
- Doris Blechinger & Friedhelm Pfeiffer, 1999. "Qualifikation, Beschäftigung und technischer Fortschritt, Empirische Evidenz mit den Daten des Mannheimer Innovationspanels," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 218(1+2), pages 128-146, January.
- Gary A Knight & S Tamer Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan, vol. 35(4), pages 334-334, July.
- Dunning, John H. & Lundan, Sarianna M., 1998. "The geographical sources of competitiveness of multinational enterprises: an econometric analysis," International Business Review, Elsevier, vol. 7(2), pages 115-133, April.
- Gary A Knight & S Tamar Cavusgil, 2004. "Innovation, organizational capabilities, and the born-global firm," Journal of International Business Studies, Palgrave Macmillan, vol. 35(2), pages 124-141, March.
- Pearce, Robert D., 1999. "Decentralised R&D and strategic competitiveness: globalised approaches to generation and use of technology in multinational enterprises (MNEs)," Research Policy, Elsevier, vol. 28(2-3), pages 157-178, March.
- Katsoulacos, Y., 1984. "Product innovation and employment," European Economic Review, Elsevier, vol. 26(1-2), pages 83-108.
- Walter Kuemmerle, 1999. "The Drivers of Foreign Direct Investment into Research and Development: An Empirical Investigation," Journal of International Business Studies, Palgrave Macmillan, vol. 30(1), pages 1-24, March.
- Bart Verspagen & Wilfred Schoenmakers, 2004.
"The spatial dimension of patenting by multinational firms in europe,"
Journal of Economic Geography,
Oxford University Press, vol. 4(1), pages 23-42, January.
- Verspagen, B. & Schoenmakers, W., 2002. "The Spatial Dimension of Patenting by Multinational Firms in Europe," Working Papers 02.11, Eindhoven Center for Innovation Studies.
- Patel, Pari & Vega, Modesto, 1999. "Patterns of internationalisation of corporate technology: location vs. home country advantages1," Research Policy, Elsevier, vol. 28(2-3), pages 145-155, March.
When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:7442. 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.