Participation in export markets and the role of R&D: establishment-level evidence from the UK Community Innovation Survey 2005

Harris, R. and Li, Q.C. (2011) Participation in export markets and the role of R&D: establishment-level evidence from the UK Community Innovation Survey 2005. Applied Economics, 43(23), pp. 3007-3020. (doi: 10.1080/00036840903427190)

Abstract

There is a strong expectation in the literature that exporting and innovation activities (particularly R&D) are strongly related, and that the need to be innovative is increasing over time due to globalization. In this study, we find that R&D is endogenous in a model that determines which British establishments enter export markets, and when such simultaneity is taken into account the strength of the export-innovation relationship is generally quite weak (especially in the nonmanufacturing sector). Rather, we find that the size of establishments and firms, foreign ownership, the extent of international co-operation and, most importantly, the industry sector to which the establishment belongs, are the most significant in explaining which establishments are able to overcome entry barriers into overseas markets.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Li, Miss Qian and Harris, Prof Richard
• Authors: Harris, R., and Li, Q.C.
• Subjects: H Social Sciences > HB Economic Theory
• College/School: College of Social Sciences > Adam Smith Business School > Economics
• Journal Name: Applied Economics
• ISSN: 0003-6846
• ISSN (Online): 1466-4283
• Published Online: 07 October 2010