Arbeitspapier

Knowledge, location, and internationalization: Empirical evidence for manufacturing SMEs

This paper investigates the links between locational conditions, innovative capabilities and internationalization of manufacturing SMEs. Two modes of foreign market servicing are explored: exporting activity and relocating of selected business activities abroad. The empirical analysis employs two probit models based on survey of about 3,000 firms. The results reveal that the outputs of SMEs' innovative activities-i.e., product innovations and patent applications-enhance exporting propensity as expected. Nevertheless, the input-side indicator-R&D intensity-appears to exert no impact. Further, the locational factor proximity to research institutions promotes SMEs' engagement in exporting. Regarding the determinants of selective relocations abroad, the findings show that SMEs with a high degree of R&D are less likely to separate production from other operations and relocate it abroad. Moreover, manufacturing SMEs assessing the proximity to research facilities, as well as support from various regional authorities and other bodies as important and good-quality locational conditions, exhibit a significantly lower likelihood to relocate selected activities abroad. Indeed, emphasizing the role of institutional setting in firm activity, our findings coincide in this respect with the previous literature focused on innovative milieu, learning regions and regional innovation systems.

Sprache
Englisch

Erschienen in
Series: DIW Discussion Papers ; No. 1229

Klassifikation
Wirtschaft
Real Estate Markets, Spatial Production Analysis, and Firm Location: General
Innovation; Research and Development; Technological Change; Intellectual Property Rights: General
International Business Administration
Firm Performance: Size, Diversification, and Scope
Thema
Export
innovation
location
manufacturing SMEs
selective relocation abroad

Ereignis
Geistige Schöpfung
(wer)
Lejpras, Anna
Ereignis
Veröffentlichung
(wer)
Deutsches Institut für Wirtschaftsforschung (DIW)
(wo)
Berlin
(wann)
2012

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Lejpras, Anna
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Entstanden

  • 2012

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