Economics at your fingertips  

Internationalization and Innovation in Emerging Markets

Hein Roelfsema () and Yi Zhang ()
Additional contact information
Hein Roelfsema: Utrecht University (Netherlands)
Yi Zhang: Jiaotong University (China)

Foresight and STI Governance (Foresight-Russia till No. 3/2015), 2018, vol. 12, issue 3, 34-42

Abstract: With high growth on domestic markets, many firms in emerging economies face a tradeoff between using their competitive advantages in foreign markets or innovating in domestic markets. By analyzing export and innovation data for a large dataset of Chinese firms, we uncover a specific productivity sorting pattern of firms over exporting and innovation. As expected, high productivity firms both export and innovate and low productivity firms do not export or innovate. Interestingly, low-medium productivity firms export more than they innovate, whereas high-medium productivity firms innovate more than they export. Clearly, these findings have important implications for the new trade literature that stresses the primacy of high productivity for entry into export markets.

Keywords: internationalization; innovation; emerging markets; strategic choice; new trade theory; profits/productivity linkage (search for similar items in EconPapers)
JEL-codes: O32 O33 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link) ... -Roelfsema-34-42.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Foresight and STI Governance (Foresight-Russia till No. 3/2015) from National Research University Higher School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Nataliya Gavrilicheva ().

Page updated 2018-12-01
Handle: RePEc:hig:fsight:v:12:y:2018:i:3:p:34-42