The Internationalization of Small and Medium-Sized Enterprises: A Policy Perspective

Posted: 7 Jun 2013

See all articles by Zoltan J. Acs

Zoltan J. Acs

Schar School of Policy and Government

Randall Morck

University of Alberta - Department of Finance and Statistical Analysis; National Bureau of Economic Research (NBER); European Corporate Governence Institute; Asian Bureau of Finance and Economic Research

J. Myles Shaver

Independent

Bernard Yin Yeung

National University of Singapore - Business School

Date Written: Feb. 20, 1996

Abstract

Small and medium sized firms play an important role in the process of creative destruction. The focus of the paper is on the international diffusion of small and medium sized firms innovations. Small and medium sized firms face two challenges in globalization: property rights protection and barriers to entry. We suggest that these barriers can frequently be circumvented by using existing multinationals as international conduits for small and medium size firms' innovations. However, such intermediated modes of expansion is adversely affected by transaction difficulties and intermediator's rent extraction. We raise two categories of questions: (i) is the private sector systematically making the wrong choice between the direct and intermediated mode of international expansion? and (ii) What should be the policy guidelines to improve the overall rate of international diffusion of innovation by small and medium sized enterprises.

Suggested Citation

Acs, Zoltan J. and Morck, Randall K. and Myles Shaver, J. and Yeung, Bernard Yin, The Internationalization of Small and Medium-Sized Enterprises: A Policy Perspective (Feb. 20, 1996). Small Business Economics, Vol. 9, No. 1, 1997; University of Alberta School of Business Research Paper No. 2013-622. Available at SSRN: https://ssrn.com/abstract=2275577

Zoltan J. Acs (Contact Author)

Schar School of Policy and Government ( email )

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HOME PAGE: http://home.ubalt.edu/zacs

Randall K. Morck

University of Alberta - Department of Finance and Statistical Analysis ( email )

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National Bureau of Economic Research (NBER)

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European Corporate Governence Institute ( email )

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Asian Bureau of Finance and Economic Research ( email )

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J. Myles Shaver

Independent

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Bernard Yin Yeung

National University of Singapore - Business School ( email )

15 Kent Ridge Drive
BIZ 1 Level 6
Singapore, 119245
Singapore
65 6516 3075 (Phone)
65 6779 1365 (Fax)

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