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Title:Competing internationally: On the importance of R&D for export activity PDF Logo
Authors:Czarnitzki, Dirk
Wastyn, Annelies
Issue Date:2010
Series/Report no.:ZEW Discussion Papers 10-071
Abstract:Export is an important factor to improve growth and welfare especially for industrialized small, open economies such as Belgium. Policy may be interested in key variables that can influence export. This paper finds evidence for the importance of R&D for export activities using Belgian firm-level data. To control for reverse causality, R&D-subsidy variables are used to instrument R&D. The results show that R&D policies may indirectly help to increase the export performance of the economy. Due to the exceptionally high openness of Belgium, two subsamples of firms are considered, domestic firms and multinational firms. We observe positive effects of R&D on export for both domestic and MNEs. Once we instrument R&D because of its potential endogeneity, however, it turns out that the effect of R&D on exports is larger for domestic firms than for multinational companies.
Subjects:Export
R&D
Multinational enterprises
Innovation Policy
JEL:F23
O33
O38
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des ZEW
ZEW Discussion Papers

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