Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/50086
Authors: 
Siedschlag, Iulia
Zhang, Xiaoheng
Cahill, Brian
Year of Publication: 
2010
Series/Report no.: 
ESRI working paper 363
Abstract: 
This paper examines the effects of the internationalisation of firms via foreign direct investment and trade on their innovation and productivity performance. Our econometric results suggest that foreign affiliates and domestic exporters were more likely to invest in innovation and furthermore that they were more likely to be more successful in terms of innovation output and higher productivity than firms that served only the domestic market. On average, innovation output was positively associated with labour productivity over and above other determinants. Access to external knowledge flows explain to a large extent the innovation performance of firms, in particular co-operation with suppliers, with consultants, commercial labs or private R&D institutes, with universities or other higher education institutions.
Subjects: 
multinational firms
exporting
knowledge production
productivity
JEL: 
F10
F23
O31
Document Type: 
Working Paper

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