Firm R&D Investment and Export Market Exposure

Konferenzbeitrag

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.

Object Details

• Language: Englisch

References and Relationships

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

Classification and Topics

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

Contributors, Places and Time

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

Further information

• Handle: http://hdl.handle.net/10419/112938
• Last update: 10.03.2025, 11:44 AM CET