Firm R&D investment and export market exposure |
| |
| Institution: | 1. ZEW – Leibniz Centre for European Economic Research, L7,1, 68163 Mannheim, Germany;2. University of Luxembourg, Luxembourg;3. Mannheim Centre for Competition and Innovation (MaCCI), Germany;4. Pennsylvania State University, United States of America;5. NBER, United States of America;6. Maastricht University, Tongersestraat 53, 6211 LM Maastricht, the Netherlands;1. University of Liverpool Management School, United Kingdom;2. Department of Strategy and Innovation, Copenhagen Business School, Denmark;1. Department of Management, Lund University School of Economics and Management, Sweden;3. Technical University of Munich, Germany;1. Pennsylvania State University, Smeal College of Business, United States of America;2. George Mason University, School of Business, United States of America;1. International Business, HEC Montreal, 3000, chemin de la Côte-Sainte-Catherine, Montréal, Québec H3T 2A7, Canada;2. Policy, Research and Statistics, UNIDO, Vienna International Centre, Wagamer Strasse 5, Vienna 1400, Austria;3. Sobey School of Business, Saint Mary''s University, 923 Robie St., Halifax, Nova Scotia B3H 3C3, Canada;4. Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia;1. Industrial Systems Engineering & Management, National University of Singapore, Collect of Design and Engineering, Block E1A, #06-25, 1 Engineering Drive 2, Singapore 117576, Singapore;2. MIS Department, Faculté des sciences de l''administration, Université Laval Québec, QC G1V 0A6, Canada;3. Department of Strategic Management & Entrepreneurship, Rotterdam School of Management, Burgemeester Oudlaan 50, 3062PA Rotterdam, the Netherlands;4. Institute for Engineering Leadership, National University of Singapore, #05-49, 4 Engineering Drive 3, Singapore 117583, Singapore |
| |
| Abstract: | We study differences in the returns to R&D investment between German manufacturing firms that sell in international markets and firms that only sell in the domestic market. Using firm-level data for five high-tech manufacturing sectors, we estimate a dynamic structural model of a firm's discrete decision to invest in R&D and use it to measure the difference in expected long-run benefit from R&D investment for exporting and domestic firms. The results show that R&D investment leads to higher rates of product and process innovation among exporting firms and these innovations have a larger economic return in export market sales than domestic market sales. As a result of this higher payoff to R&D investment, exporting firms invest in R&D more frequently than domestic firms, and this endogenously generates higher rates of productivity growth. We use the model to simulate the introduction of export and import tariffs on German exporters, and find that a 20 % export tariff reduces the long-run payoff to R&D by 24.2 to 46.9 % for the median firm across the five industries. Overall, export market sales contribute significantly to the firm's return on R&D investment which, in turn, raises future firm value, providing a source of dynamic gains from trade. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
