Innovation and Export-market Participation in Canadian Manufacturing

Afshan Dar-Brodeur, John Baldwin and Beiling Yan ()

Analytical Studies Branch Research Paper Series from Statistics Canada, Analytical Studies Branch

Abstract:

This paper asks whether research and development (R&D) drives the level of competitiveness required to successfully enter export markets and whether, in turn, participation in export markets increases R&D expenditures. Canadian non-exporters that subsequently entered export markets in the first decade of the 2000s are found to be not only larger and more productive, as has been reported for previous decades, but also more likely to have invested in R&D. Both extramural R&D expenditures (purchased from domestic and foreign suppliers) and intramural R&D expenditures (performed in-house) increase the ability of firms to penetrate export markets. Exporting also has a significant impact on subsequent R&D expenditures; exporters are more likely to start investing in R&D. Firms that began exporting increased the intensity of extramural R&D expenditures in the year in which exporting occurred.

Keywords: Business performance and ownership; Manufacturing; Research and development; Science and technology (search for similar items in EconPapers)
Date: 2016-11-28
New Economics Papers: this item is included in nep-cse, nep-ino, nep-int, nep-sbm and nep-tid
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:stc:stcp3e:2016386e

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