R&amp;D Investment, Exporting, and Productivity Dynamics

Aw, Bee Yan; Roberts, Mark J.; Xu, Daniel Yi

doi:10.1257/aer.101.4.1312

Cited by 628 publications

(465 citation statements)

References 22 publications

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“…Recently, for individual middle-income countries several empirical studies demonstrate that firms that internationalize learn and improve productivity (De Loecker, 2007;Aw et al, 2008Aw et al, , 2011Damijan et al, 2009). We contribute to this agenda by studying the impact of various internationalization modes on innovation using a broader dataset that consists of firms from 10 transition countries.…”

Section: Introductionmentioning

confidence: 99%

The Effects of Internationalization on Innovation: Firm-Level Evidence for Transition Economies

Boermans

Roelfsema

2014

Open Econ Rev

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It is well-documented that international enterprises are more productive. Only few studies have explored the effect of internationalization on productivity and innovation at the firm-level. Using propensity score matching we analyze the causal effects of internationalization on innovation in 10 transition economies. We distinguish between three types of internationalization: exporting, FDI, and international outsourcing. We find that internationalization causes higher levels of innovation. More specifically, we show that (i) exporting results in more R&D, higher sales from product innovation, and an increase in the number of international patents (ii) outward FDI increases R&D and international patents (iii) international outsourcing leads to higher sales from product innovation. The paper provides empirical support to the theoretical literature on heterogeneous firms in international trade that argues that middle income countries gain from trade liberalization through increases in firm productivity and innovative capabilities.

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Section: Introductionmentioning

confidence: 99%

The Effects of Internationalization on Innovation: Firm-Level Evidence for Transition Economies

Boermans

Roelfsema

2014

Open Econ Rev

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“…Moreover, the literature does not provide answers for the question of which modes of innovation benefit from internationalization. For example, Aw et al (2011) find that past export experience is not an important factor in determining a firm's decision to carry out R&D. Damijan et al (2010) find a positive effect of a firm's export status on process innovation, but not on product innovation. Meanwhile, Lileeva and Trefler (2010) and Bustos (2011) find trade liberalization impacts both types of innovation.…”

Section: From Export To Innovationmentioning

confidence: 99%

Dynamics of Innovation and Internationalization Among Small and Medium-Sized Enterprises in Viet Nam

Trinh

2016

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Working papers are subject to formal revision and correction before they are finalized and considered published.Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, JapanTel:+81-3-3593-5500 Fax:+81-3-3593-5571 URL:www.adbi.org E-mail: info@adbi.org AbstractThis paper examines the bidirectional causality between innovation and internationalization in the context of developing countries. Using a dynamic bivariate probit model and adopting a broad definition of internationalization, this paper analyzes these issues using a panel dataset of small and medium-sized enterprises in Viet Nam. The results show a high persistence in process and product innovations and internationalization decisions. Furthermore, we find that, for non-micro firms, past internationalization has a positive effect on process innovation, but past process innovation does not have a significant effect on the internationalization decision. For this group of firms, we also find signs of cross-dependence between process innovation and the internationalization decision. Our results, however, do not show dynamic interdependence between internationalization and product innovation.

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“…Innovation and export participation have been found to be heavily interlinked, both in Spain (Caldera, 2010) and internationally (Altomonte et al, 2013;Aw et al, 2011). Exporters often access diverse knowledge inputs not available in the domestic market (Salomon and Shaver, 2005).…”

Section: Policies To Improve Export Performancementioning

confidence: 99%

Moving Towards a More Dynamic Business Sector in Spain

Pandiella

2014

OECD Economics Department Working Papers

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R&D Investment, Exporting, and Productivity Dynamics

Cited by 628 publications

References 22 publications

The Effects of Internationalization on Innovation: Firm-Level Evidence for Transition Economies

The Effects of Internationalization on Innovation: Firm-Level Evidence for Transition Economies

Dynamics of Innovation and Internationalization Among Small and Medium-Sized Enterprises in Viet Nam

Moving Towards a More Dynamic Business Sector in Spain

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