R&D and the Export Decision of New Firms
Creighton University - Department of Economics
Kansas State University
March 31, 2010
Southern Economic Journal 78, no. 1 (July 2011): 191-210
Recent literature on the firm-level decision to export has focused on identifying factors that influence the export decision of firms regardless of the number of years they have been in operation. This paper, alternatively, examines the factors that influence new firms to export within the first four years of operation. The results support two key findings that have commonly emerged from entrepreneurial case studies: (1) that there is a positive link between research and development (R&D) and early internationalization and (2) that international ties of managers, as is evidenced by the effect of foreign born owners, positively impacts the firm’s decision to export. The former result is the emphasis of this paper. In addition, we find that innovation spillovers from neighboring firms impact the export decision of new firms that engage in R&D.
Keywords: Export, Firm, R&D, New Firm, Innovation, Internationalization
Date posted: September 28, 2010 ; Last revised: May 10, 2013