Konferenzbeitrag

Firm R&D Investment and Export Market Exposure

In this paper, we estimate a dynamic structural model of a rm s decision to invest in R&D and use it to measure the expected long-run bene t from R&D investment. We apply the model to German rms in ve high-tech manufacturing industries and distinguish rms by whether they sell in just the domestic market or also export some of their production. We nd that R&D investment leads to a higher rate of product and process innovation among exporting rms and these innovations have a larger impact on productivity improvement in export market sales. As a result, exporting rms have a higher payo from R&D investment, invest in R&D more frequently than rms that only sell in the domestic market, and, subsequently, have higher rates of productivity growth. The endogenous investment in R&D is an important mechanism that leads to a divergence in the long-run performance of rms that di er in their export market exposure.

Language
Englisch

Bibliographic citation
Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2015: Ökonomische Entwicklung - Theorie und Politik - Session: Industrial Organization V ; No. E11-V1

Classification
Wirtschaft
Industry Studies: Manufacturing: General
Innovation and Invention: Processes and Incentives
Technological Change: Choices and Consequences; Diffusion Processes

Event
Geistige Schöpfung
(who)
Vuong, Van Anh
Peters, Bettina
Roberts, Mark
Event
Veröffentlichung
(when)
2015

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Konferenzbeitrag

Associated

  • Vuong, Van Anh
  • Peters, Bettina
  • Roberts, Mark

Time of origin

  • 2015

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