R&D and Exporting: A Comparison of British and Irish Firms

University of Nottingham Research Paper No. 2007/18

30 Pages Posted: 19 Apr 2007

See all articles by Sourafel Girma

Sourafel Girma

Nottingham University Business School

Holger Görg

University of Kiel; Kiel Institute for the World Economy

Aoife Hanley

Nottingham University Business School (NUBS) - Industrial Economics Division

Date Written: April 2007

Abstract

This paper investigates the two way relationship between R&D and export activity. In particular, we concern ourselves with the question whether R&D stimulates exports and, perhaps more importantly, whether export activity leads to increasing innovative activity in terms of R&D (learning by exporting). We use two unique firm level databases for Great Britain and the Republic of Ireland and compare the results for these two countries. We find that previous exporting experience enhances the innovative capability of Irish firms. Conversely, no strong learning-by-exporting effects are found for British firms. Arguably the differences between Ireland and Britain are attributable to different, cross-country exporting patterns where Irish firms have a greater interface with OECD markets.

Keywords: learning effects, exporting, innovation, R&D

JEL Classification: F14, F23

Suggested Citation

Girma, Sourafel and Gorg, Holger and Hanley, Aoife, R&D and Exporting: A Comparison of British and Irish Firms (April 2007). Available at SSRN: https://ssrn.com/abstract=980929 or http://dx.doi.org/10.2139/ssrn.980929

Sourafel Girma (Contact Author)

Nottingham University Business School ( email )

Jubilee Campus
Nottingham, NG8 1BB
United Kingdom
+44 0 115 8466656 (Phone)

HOME PAGE: http://www.nottingham.ac.uk/~lizsmg/

Holger Gorg

University of Kiel ( email )

Olshausenstr. 40
D-24118 Kiel, Schleswig-Holstein 24118
Germany

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, Schleswig-Hosltein D-24100
Germany

Aoife Hanley

Nottingham University Business School (NUBS) - Industrial Economics Division ( email )

Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB
United Kingdom

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