Firm R&D Investment and Export Market Exposure

Van Anh Vuong, Bettina Peters () and Mark Roberts

VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy from Verein für Socialpolitik / German Economic Association

Abstract: 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.

JEL-codes: L60 O31 O33 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ind, nep-ino, nep-int, nep-knm, nep-sbm and nep-tid
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Related works:
Journal Article: Firm R&D investment and export market exposure (2022)
Working Paper: Firm R&D Investment and Export Market Exposure (2018)
Working Paper: Firm R&D Investment and Export Market Exposure (2018)
Working Paper: Firm R&D investment and export market exposure (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc15:112938

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