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

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

Small Firm Internationalization, Innovation, and Growth

This paper studies the effect of internationalization on innovation and firm performance (employment growth and sales growth) taking the interdependencies among the variables into account. Given the potential endogeneity, this study uses theory-driven instrumental variables and structural equation modelling to estimate the direct and indirect effects of internationalization. Firm-level data is obtained from a survey of 150 Dutch small firms that took part in an export promotion program. The main results show that internationalization has a positive impact on innovation. Internationalization increases firm performance directly and indirectly through innovation, while the direct impact of innovation on firm performance is insignificant. We contribute to the literature of export promotion programs as our results suggest that they not only increase small firm internationalization but also affect innovation and firm growth

Статья из газеты "Утро Росии" от 20 августа 1913г. №191

Архивные материалы, содержащие новые факты истории Карадагской Научной Станции (Карадагской Биостанции).Архівні матеріали, що містять нові факти історії Карадагськой Наукової Станції (Карадагськой біостанції)

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

This study analyses how various internationalization modes affect innovation in ten transition economies. Using propensity score matching to account for selection, we match firms on size, sector, and country. A key contribution is that firms are also matched based on the heterogeneity of institutional legacy systems at the firm level as such burden is commonly associated with firms in transition economies and affects internationalization. The empirical results show that internationalization raises a firm’s tendency to innovate. More specific, outsourcing is connected to product innovation, whereas exporting and FDI are associated with R&D spending and patenting