Which Portuguese firms are more innovative? The importance of multinationals and exporters (original) (raw)
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Which firms are the most innovative? The importance of multinationals and exporters in Portugal
Acta Oeconomica, 2013
In this study we test the trade Global Engagement hypothesis in which firms most globally engaged -either multinationals or exporters -are most innovative. The test is applied to the data of 4,815 Portuguese firms for the period 2002-2004 by using the fourth Portuguese Community Innovation Survey. We estimated several Knowledge Production Functions, assuming that knowledge outputs result from the combination of some knowledge
2004
Why do some firms create more knowledge than others? This question is typically answered in macro and industrial-organization literatures with reference to a production-function model in which new ideas spring from the interaction of researchers and the existing stock of knowledge. But there is very little empirical evidence on production functions for new ideas. In this paper we estimate knowledge production functions for a cross-section of U.K. firms covering their operations from 1998 through 2000. We focus in particular on the hypothesis from the trade literature that globally engaged firms-either multinationals or exporters-have access to larger knowledge stocks. We find that globally engaged firms do generate more ideas than their purely domestic counterparts. This is not just because they use more researchers. Importantly, it is also because they have access to a larger stock of ideas through two main sources: their upstream and downstream contacts with suppliers and customers, and, for multinationals, their intra-firm worldwide pool of information.
Global engagement and the innovation activities of firms
International Journal of Industrial Organization, 2010
Firms that export or, even more so, are part of a multinational enterprise tend to exhibit higher productivity than their purely domestic counterparts. To better understand this correlation, we incorporate the perspective of industrial organization that one of the main drivers of differences in productivity is differences in knowledge. We examine a new data set of several thousand U.K. enterprises covering all industries from 1994 through 200. For each enterprise we have multiple detailed measures of knowledge outputs, knowledge investments, and sources of existing knowledge. We find that globally engaged firms do innovate more. But this is not just because globally engaged firms use more researchers. It is also because they learn more from more sources such as suppliers and customers, universities, and their intra-firm worldwide pool of information. We also find that the relative importance of knowledge sources varies systematically with the type of innovation.
The Brazilian Multinationals' Approaches to Innovation
2013
Brazilian multinationals, born in a country where the environment is non-conducive to the scientific breakthrough type of innovation so stimulated in other countries, are increasingly expanding in international markets, where innovativeness is an intrinsic component of competitiveness. Aiming to study Brazilian multinationals' approaches to innovation, a new analytical framework was developed assuming that the internationalization process relies on the firm's innovative capability. In turn, innovative capabilities are derived from core competences and competence formation at firm level is influenced by the characteristics of the national environment. A survey involving 61 Brazilian multinationals led to the identification of four approaches to innovation, the competences that enable each one of them and the country-of-origin effects over competence development. That led to the explanation of why firms that do not show the expected strength in R&D, but are able to combine skillfully their organizational competences, manage to develop innovative capabilities which allow them to internationalize successfully. The overall outcome suggests that the dynamic relationships among institutions – competences – innovation – internationalization are setting new grounds for the international expansion of Brazilian firms.
The impact of multinationality on the propensity to innovate
2003
The paper is developed at the interface between internationalisation and innovation studies. It utilises data on innovation from the UK CIS 3 and 2 to assess whether multinationality affects the innovation propensity of surveyed enterprises. The indicators of innovation propensityour dependent variables -are taken from the following CIS sets of variables: innovation outputs; innovation inputs (R&D variables); Innovation outcomes (patents and turnover); innovation continuity/sustainability. The latter element of innovation propensity is considered to be the ability of the enterprise to sustain innovation over a long period of time. The relevant variables are derived from an analysis of the activities of enterprises that respond to both CIS 3 and 2. This allows the paper to take account of long-term innovation activities and thus to introduce dynamic elements into the analysis. To this end, the chosen enterprises for the study are a subset of all the surveyed ones in CIS3, specifically all those enterprises that took part in both CIS 3 and 2. Our main hypothesis states that multinationality per se (i.e. being part of a multinational versus being part of a uninational company) affects the propensity to innovate. We also test for three sub-hypotheses related to characteristics of multinationality. Specifically: belonging to a group or being independent; degree of multinationality, measured by two indices; being part of a foreign versus a domestic multinational. Correspondingly to these hypotheses we construct a relevant set of variables -our independent variablesrelated to the various multinationality characteristics. The results show that all those CIS firms that belong to a multinational corporation are more likely to show innovation propensity. Furthermore, they are also more likely to engage in innovation activities on a continuous basis. The data supports our sub-hypotheses: Multinationality is positively related to innovation propensity, mainly because firms benefit from operating in a number of countries and not only because they can tap into the resources of an internal network of firms. A higher degree of multiationality appears to contribute further to innovation propensity. We find little evidence for a relationship between a firms' country of origin and its innovation propensity. F23; O12, 19, 30,31.
Does internationalisation affect firms' innovativeness ?
Innovation represents a multidimensional process which originates within companies from a combination of internal and external factors. In this framework, internationalisation represents a significant source of external knowledge for enterprises since it can raise competition among companies, increase the scale of production, and create opportunities of learning-by-exporting. The present paper aims at investigating the impact of internationalisation on innovations by implementing a sectoral analysis based upon a firm-level dataset of Italian manufacturing companies. Empirical results suggest that being active at international level increases remarkably the probability for Italian companies to innovate in almost all manufacturing sectors and mainly in the supplier dominated and the scale intensive industries.
The Effects of the Internationalisation of Firms on Innovation
2010
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.
2000
The paper is developed at the interface between internationalisation and innovation studies. It utilises data on innovation from the UK CIS 3 and 2 to assess whether multinationality affects the innovation propensity of surveyed enterprises. The indicators of innovation propensityour dependent variables -are taken from the f ollowing CIS sets of variables: innovation outputs; innovation inputs (R&D variables); Innovation outcomes (patents and turnover); innovation continuity/sustainability. The latter element of innovation propensity is considered to be the ability of the enterprise to sustain innovation over a long period of time. The relevant variables are derived from an analysis of the activities of enterprises that respond to both CIS 3 and 2. This allows the paper to take account of long-term innovation activities and thus to introduce dynamic elements into the analysis. To this end, the chosen enterprises for the study are a subset of all the surveyed ones in CIS3, specifically all those enterprises that took part in both CIS 3 and 2. Our main hypothesis states that multinationality per se (i.e. being part of a multinational versus being part of a uninational company) affects the propensity to innovate. We also test for three sub-hypotheses related to characteristics of multinationality. Specifically: belonging to a group or being independent; degree of multinationality, measured by two indices; being part of a foreign versus a domestic multinational. Correspondingly to these hypotheses we construct a relevant set of variables -our independent variablesrelated to the various multinationality characteristics. The results show that all those CIS firms that belong to a multinational corporation are more likely to show innovation propensity. Furthermore, they are also more likely to engage in innovation activities on a continuous basis. The data supports our sub-hypotheses: Multinationality is positively related to innovation propensity, mainly because firms benefit from operating in a number of countries and not only because they can tap into the resources of an internal network of firms. A higher degree of multiationality appears to contribute further to innovation propensity. We find little evidence for a relationship between a firms' country of origin and its innovation propensity. F23; O12, 19, 30,31.
Essays on International Trade, Firm's Innovation and Productivity
2011
Fundamental causes of LBE 2.3. Review of empirical literature on LBE 2.3.1. Modelling empirical work 2.3.2. Methodological issues 2.3.2.1. Case studies 2.3.2.2. Micro-panel data studies 2.3.3. Review of empirical studies 2.3.4. The misestimation of LBE 2.3.4.1. Underestimation of LBE 2.3.4.2. Overestimation of LBE 2.4. Trade and productivity revisited 2.4.1. The importance of imports vii 2.4.2. Beyond within-firm level: reallocation effects across firms 2.4.3. Further investigation lines 2.5. Concluding remarks CHAPTER 3 WHICH PORTUGUESE FIRMS ARE MOST INNOVATIVE? THE IMPORTANCE OF MULTINATIONALS AND EXPORTERS 5.5. Conclusions