R&D, product innovation, and exporting

evidence from UK new technology based firms

Panagiotis Ganotakis, James H. Love

Research output: Contribution to journalArticle

Abstract

We examine the relationship between R&D, product innovation, and exporting for a sample of new technology based firms (NTBFs) in the UK. Allowance is made for selection bias and for endogeneity between innovation and exporting. Product innovators are more likely to export, but conditional on entering export markets successful innovation does not increase subsequent export intensity. Lagged productivity is strongly associated with exporting, supporting the view that efficient firms are better able to overcome the barriers to entering export markets. We also find strong evidence of the importance of internal R&D and of supply-chain collaborations in fostering innovation, and that formal commercial collaborations can be important in overcoming the (information) sunk costs of entering export markets. The use of e-commerce does nothing to boost entry into export markets, but the intensity of its use is associated with increased export intensity.
Original languageEnglish
Pages (from-to)279-306
Number of pages28
JournalOxford Economic Papers
Volume63
Issue number2
Early online date14 Nov 2010
DOIs
Publication statusPublished - Apr 2011

Fingerprint

Exporting
Export markets
Product innovation
New technology-based firms
Innovation
Export intensity
Selection bias
Innovators
Electronic commerce
Supply chain collaboration
Productivity
Sunk costs
Intensity of use
Endogeneity

Bibliographical note

This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Oxford economic papers following peer review. The definitive publisher-authenticated version Ganotakis, P., & Love, J. H. (2011). R&D, product innovation, and exporting: Evidence from UK new technology based firms. Oxford economic papers, 63(2), 279-306 is available online at: http://oep.oxfordjournals.org/content/63/2/279

Cite this

Ganotakis, Panagiotis ; Love, James H. / R&D, product innovation, and exporting : evidence from UK new technology based firms. In: Oxford Economic Papers. 2011 ; Vol. 63, No. 2. pp. 279-306.
@article{202c2aba986e4ae4a3f121838dd91c38,
title = "R&D, product innovation, and exporting: evidence from UK new technology based firms",
abstract = "We examine the relationship between R&D, product innovation, and exporting for a sample of new technology based firms (NTBFs) in the UK. Allowance is made for selection bias and for endogeneity between innovation and exporting. Product innovators are more likely to export, but conditional on entering export markets successful innovation does not increase subsequent export intensity. Lagged productivity is strongly associated with exporting, supporting the view that efficient firms are better able to overcome the barriers to entering export markets. We also find strong evidence of the importance of internal R&D and of supply-chain collaborations in fostering innovation, and that formal commercial collaborations can be important in overcoming the (information) sunk costs of entering export markets. The use of e-commerce does nothing to boost entry into export markets, but the intensity of its use is associated with increased export intensity.",
author = "Panagiotis Ganotakis and Love, {James H.}",
note = "This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Oxford economic papers following peer review. The definitive publisher-authenticated version Ganotakis, P., & Love, J. H. (2011). R&D, product innovation, and exporting: Evidence from UK new technology based firms. Oxford economic papers, 63(2), 279-306 is available online at: http://oep.oxfordjournals.org/content/63/2/279",
year = "2011",
month = "4",
doi = "10.1093/oep/gpq027",
language = "English",
volume = "63",
pages = "279--306",
journal = "Oxford Economic Papers",
issn = "0030-7653",
publisher = "Oxford University Press",
number = "2",

}

R&D, product innovation, and exporting : evidence from UK new technology based firms. / Ganotakis, Panagiotis; Love, James H.

In: Oxford Economic Papers, Vol. 63, No. 2, 04.2011, p. 279-306.

Research output: Contribution to journalArticle

TY - JOUR

T1 - R&D, product innovation, and exporting

T2 - evidence from UK new technology based firms

AU - Ganotakis, Panagiotis

AU - Love, James H.

N1 - This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Oxford economic papers following peer review. The definitive publisher-authenticated version Ganotakis, P., & Love, J. H. (2011). R&D, product innovation, and exporting: Evidence from UK new technology based firms. Oxford economic papers, 63(2), 279-306 is available online at: http://oep.oxfordjournals.org/content/63/2/279

PY - 2011/4

Y1 - 2011/4

N2 - We examine the relationship between R&D, product innovation, and exporting for a sample of new technology based firms (NTBFs) in the UK. Allowance is made for selection bias and for endogeneity between innovation and exporting. Product innovators are more likely to export, but conditional on entering export markets successful innovation does not increase subsequent export intensity. Lagged productivity is strongly associated with exporting, supporting the view that efficient firms are better able to overcome the barriers to entering export markets. We also find strong evidence of the importance of internal R&D and of supply-chain collaborations in fostering innovation, and that formal commercial collaborations can be important in overcoming the (information) sunk costs of entering export markets. The use of e-commerce does nothing to boost entry into export markets, but the intensity of its use is associated with increased export intensity.

AB - We examine the relationship between R&D, product innovation, and exporting for a sample of new technology based firms (NTBFs) in the UK. Allowance is made for selection bias and for endogeneity between innovation and exporting. Product innovators are more likely to export, but conditional on entering export markets successful innovation does not increase subsequent export intensity. Lagged productivity is strongly associated with exporting, supporting the view that efficient firms are better able to overcome the barriers to entering export markets. We also find strong evidence of the importance of internal R&D and of supply-chain collaborations in fostering innovation, and that formal commercial collaborations can be important in overcoming the (information) sunk costs of entering export markets. The use of e-commerce does nothing to boost entry into export markets, but the intensity of its use is associated with increased export intensity.

UR - http://www.scopus.com/inward/record.url?scp=79952836223&partnerID=8YFLogxK

U2 - 10.1093/oep/gpq027

DO - 10.1093/oep/gpq027

M3 - Article

VL - 63

SP - 279

EP - 306

JO - Oxford Economic Papers

JF - Oxford Economic Papers

SN - 0030-7653

IS - 2

ER -