Export Orientation of Service Companies on the Increase

In the course of increasing internationalisation of the German economy, growth in export can also be expected for the German service sector. However, there has only been limited information about the export behaviour of German service companies so far. This gap can be closed to some extent by statistics existing since 2000. This study confirms that export orientation increased between 2000 and 2005. The proportion of exporting companies has augmented as well as the share of exports in turnover. There are differences according to industrial sectors. Small companies are generally less export-oriented than larger ones. The export potential is assessed as being favourable. One reason is that modern communication technologies ease the international exchange of information. The other reason is that in the international market-both in the European Union and in other countries-demand for services will also grow with investment by German companies abroad.export, service sector, small and medium-sized enterprises

Determinants of Export Behaviour of German Business Services Companies

The determinants of export behaviour at firm level have been widely investigated for manufacturing companies. By contrast, what has remained largely neglected is a detailed investigation in the service sector. As aggregate statistics show, international trade in services has grown significantly over the last few years. However, it is unclear why some companies export and others do not. This paper presents some initial results about the German business services sector at firm level. Using a unique panel dataset of enterprises from the business services sector (transport, storage and communication, real estate, renting and business activities) for the years 2003 to 2005, we analysed the impact of several firm-specific characteristics such as size, productivity, human capital, experience on the national market in Germany, etc. on the firms’ export performance. Further, we used the pooled fractional probit estimator, recently introduced by Papke & Wooldridge, an approach that considers both the special nature of the export intensity variable and in addition unobserved time-invariant characteristics. When there is no control for fixed enterprise effects the overall results are in line with previous studies. When there is a control for unobserved heterogeneity, the positive effects of productivity and human capital disappear, indicating that these variables are not per se positively related to export performance, but rather to time-constant characteristics that are unobserved. Size and product diversification still have a positive and significant effect.Business services sector, export behaviour, firm performance

The Industrial Innovation Potential of the Regions: Stuttgart and Munich Further Ahead

Innovation potential is not only an elementary precondition for economic efficiency and affluence for nations, but also for regions. Measured on R&D employment in the manufacturing industry, regional concentration has continued to remain high since 1998. The regions of Munich and Stuttgart lead by a wide margin. However, the study shows that not only strong regions benefit from structural change but also less favored regions. Conversely, for regions with a leading edge, there is no guarantee of a future leadership role. Urbanized regions have primarily gained. It is noticeable that - apart from exceptions - East Germany lags behind as a research location.Regional innovation systems, Research and development, Manufacturing

Export Growing among Knowledge-Intensive Service Providers

In the German economy, both international trade in goods and also in services have grown quite forcefully. World-wide Germany is the third-largest exporter of services. However, until recently little has been known about the export behavior of service companies, especially small and medium sized enterprises (SME). The exports of SMEs in knowledge-intensive service branches have grown in above average in the years 2003 to 2007. Admittedly, the quotient of exports of these companies is still smaller than that of the large companies. The proportion of companies exporting has increased among both SMEs and large companies. The increase however was especially pronounced among medium-sized companies. A longitudinal study for the period 2003 to 2007 shows that there are relatively few small companies that constantly export, i.e. in all of the years named here. Among the medium-sized companies there are many that - unlike the case of very small companies - first began exporting in these years. The significance of the first-time exporter exceeds the significance of those who have ended their shipments abroad.Export, Knowledge-intensive services, Small and medium sized enterprises

Determinants of Export Behaviour of German Business Services Companies

The determinants of export behaviour at firm level have been widely investigated for manufacturing companies. By contrast, what has remained largely neglected is a detailed investigation in the service sector. As aggregate statistics show, international trade in services has grown significantly over the last few years. However, it is unclear why some companies export and others do not. This paper presents some initial results about the German business services sector at firm level. Using a unique panel dataset of enterprises from the business services sector (transport, storage and communication, real estate, renting and business activities) for the years 2003 to 2005, we analysed the impact of several firm-specific characteristics such as size, productivity, human capital, experience on the national market in Germany, etc. on the firms' export performance. Further, we used the pooled fractional probit estimator, recently introduced by Papke & Wooldridge, an approach that considers both the special nature of the export intensity variable and in addition unobserved time-invariant characteristics. When there is no control for fixed enterprise effects the overall results are in line with previous studies. When there is a control for unobserved heterogeneity, the positive effects of productivity and human capital disappear, indicating that these variables are not per se positively related to export performance, but rather to time-constant characteristics that are unobserved. Size and product diversification still have a positive and significant effect.Business services sector, export behaviour, firm performance

Stimulating the Division of Innovative Labor by Regional Competition for R&D Subsidies – A New Approach in German Innovation Policy

The paper deals with a new approach in German innovation policy that organizes contests of initiatives for public funds. Based on an overview of the different programs we investigate the advantages and problems of such an approach. We find that this type of policy may have a large impact and can, therefore, be regarded a rather efficient instrument of innovation policy. Compared to conventional policies implementation is a much more critical issue. The contest approach may require more flexibility on the side of the administration, particularly with regard to the design of the assistance. The main disadvantage is the additional time that is required for conducting the contest. As a distinct “picking the winner” instrument it is not suited as a means for achieving a leveling-out of welfare levels. Keywords: Innovation policy, regional competition, innovation networks JEL-classification: H32, O18, O38, R11

Contests for Cooperation: A New Approach in German Innovation Policy

A new approach in German innovation policy organizes contests of proposals for developing innovation networks. Based on an overview of the different programs, we investigate the advantages, problems and limitations of such an approach. We find that this type of policy may have a relatively large impact and can, therefore, be regarded as a rather efficient instrument of innovation policy. Compared to conventional policies, administration of the program is a much more critical issue. The contest approach may stimulate learning effects on the side of the administration but may also require a high degree of flexibility. The main disadvantage is the additional time that is required for conducting the contest. As a distinct "picking the winner" approach, the contest approach is not suited as a means for achieving a leveling-out of regional welfare levels. -- In einem neuen Ansatz der deutschen Innovationspolitik werden Wettbewerbe für Vorschläge zur Entwicklung von Innovationsnetzwerken organisiert. Ausgehend von einem Überblick über diese Programme diskutieren wir Vorteile, Nachteile und Grenzen dieses Ansatzes. Es zeigt sich, dass diese Art der Innovationsförderung große Wirkungen erzeugen kann und daher vermutlich effizienter ist, als andere Typen von Programmen. Im Vergleich zu konventionellen Formen der Innovationsförderung ist allerdings die Administration des Programms sehr viel anspruchsvoller. Der Wettbewerbs-Ansatz kann Lerneffekte der Administration stimulieren aber auch ein relativ hohes Maß an Flexibilität erfordern. Der wesentliche Nachteil ist die zusätzliche Zeit, die für die Durchführung des Wettbewerbs benötigt wird. Da ein Wettbewerb ein ausgesprochenes ?Pick the Winner?-Vefahren darstellt, ist dieser Ansatz für eine ausgleichsorientierte Regionalpolitik kaum geeignet.Innovationspolitik,Wettbewerb zwischen Regionen,Innovationsnetzwerke,Innovation policy,regional competition,innovation networks

Contests for Cooperation: A New Approach in German Innovation Policy

A new approach in German innovation policy organizes contests of proposals for developing innovation networks. Based on an overview of the different programs, we investigate the advantages, problems and limitations of such an approach. We find that this type of policy may have a relatively large impact and can, therefore, be regarded as a rather efficient instrument of innovation policy. Compared to conventional policies, administration of the program is a much more critical issue. The contest approach may stimulate learning effects on the side of the administration but may also require a high degree of flexibility. The main disadvantage is the additional time that is required for conducting the contest. As a distinct 'picking the winner' approach, the contest approach is not suited as a means for achieving a leveling-out of regional welfare levels.Innovation policy; Regional competition; Innovation networks

Extensive Research Does Not Imply Extensive Funding

In Germany, two statistics examine the development and structure of public funding for research and development (R&D) in the private sector of the economy: the R&D statistics of the so-called "Stifterverband für die deutsche Wissenschaft - SV", a joint initiative of German industries to promote science an higher education (SV), and, secondly, the statistics of the "Bundesministerium für Bildung und Forschung, BMBF" (German Federal Ministry of Education and Research)) on "Federal Government expenditure on science, research and development to business enterprises". Based on these two sources, our weekly report provides an overview of the allocation of public R&D funding. The results highlight the fact that some research-intensive sectors-such as the manufacture of aircraft and spacecraft-benefit from disproportionately large amounts of federal state funding. Other, equally R&D-intensive business segments, such as the chemical industry receive a significantly lower proportion of public R&D grants. Generally speaking, smaller companies can expect greater support than large companies. This inequality in funding rates reflects the focus of research and innovation policy on particular company sizes or fields of technology. The second part of the report discusses the quality of the available data on the distribution of R&D funding. Considering the disparities between degree of coverage, consistency and timescale of the two statistics in question, the current state of available information remains unsatisfactory and requires further refinement.Research and Development, Funding

Ingenieurbüros, Berater und IT-Unternehmen immer aktiver im Ausland: Export bei wissensintensiven Dienstleistern wächst

In der deutschen Volkswirtschaft ist nicht nur der internationale Handel mit Waren, sondern auch der mit Dienstleistungen kräftig gestiegen. Deutschland ist der weltweit drittgrößte Exporteur von Dienstleistungen. Über das Exportverhalten von Dienstleistungsunternehmen, insbesondere kleiner und mittlerer Unternehmen (KMU), ist jedoch wenig bekannt. Die Exporte der KMU in wissensintensiven Dienstleistungsbranchen sind in den Jahren 2003 bis 2007 überdurchschnittlich gewachsen. Allerdings ist die Exportquote dieser Unternehmen immer noch geringer als die der großen Unternehmen. Der Anteil der exportierenden Unternehmen hat sowohl bei den KMU als auch bei den großen Unternehmen zugenommen. Besonders ausgeprägt war der Anstieg jedoch bei den mittelgroßen Unternehmen. Eine Längsschnittbetrachtung für den Zeitraum von 2003 bis 2007 zeigt, dass es relativ wenige Kleinunternehmen gibt, die ständig, also in allen genannten Jahren, exportieren. Unter den mittelgroßen Unternehmen gibt es - anders als bei den sehr kleinen - besonders viele, die in diesen Jahren erstmals mit dem Export begonnen haben. Die Bedeutung der erstmals Exportierenden übersteigt die Bedeutung derjenigen, die ihre Lieferungen ins Ausland eingestellt haben.Export, Knowledge-intensive services, Small and medium sized enterprises