Drivers and Effects of Internationalising Innovation by SMEs


Rammer, Christian ; Schmiele, Anja


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URL: http://ub-madoc.bib.uni-mannheim.de/2034
URN: urn:nbn:de:bsz:180-madoc-20340
Document Type: Working paper
Year of publication: 2008
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: O47 O32 O31 L25 L22 F23 ,
Subject headings (SWD): Innovation , Klein- und Mittelbetrieb , Industrieforschung , Auslandsniederlassung , Globalisierung , Immaterialgüterrecht , Deutschland
Keywords (English): Internationalisation of Innovation , Globalisation , SMEs , Effects of Innovation , Absorptive Capacities , Market Structure
Abstract: This paper investigates the drivers and the effects of the internationalisation of innovation activities in SMEs based on a large data set of German firms covering the period 2002-2007. We look at different stages of the innovation process (R&D, design, production and sales of new products, and implementation of new processes) and explore the role of internal resources, home market competition and innovationrelated location advantages for an SME’s decision to engage in innovation activities abroad. By linking international innovation activities to firm growth in the home market we try to identify likely internationalisation effects at the firm level. The results show that export experience and experience in knowledge protection are highly important for international innovation activities of SMEs. Fierce home market competition turns out to be rather an obstacle than a driver. High innovation costs stimulate internationalisation of non-R&D innovation activities, and shortage of qualified labour expels production of new products. R&D activities abroad and exports of new products spur firm growth in the home market while there are no negative effects on home market growth from shifting production of new products abroad.
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Rammer, Christian ; Schmiele, Anja (2008) Drivers and Effects of Internationalising Innovation by SMEs. Open Access [Working paper]
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