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Internationalisation and Innovation Intensities of Polish Manufacturing Firms: A Close Nexus?

Tomasz Brodzicki ()

Entrepreneurial Business and Economics Review, 2017, vol. 5, issue 1, 91-109

Abstract: Objective: The paper aims at the empirical identification of the nexus between innovation and internationalisation intensities in a sample of Polish manufacturing companies. Research Design & Methods: Using a unique dataset combining micro-level financial data from InfoCredit and results from an extensive survey we follow the approach of Altomonte, Aquilante, Ottaviano & Bekes (2013). We define innovation and internationalisation intensities and analyse the two dimensions disjointly and then simultaneously use formal econometric tools. Findings: Both dimensions are closely and robustly correlated. There is some evidence for the causality going from innovation to internationalisation. Polish manufacturing companies have in general low innovation and internationalisation intensity. Rising innovation intensity allows companies to become more internationalised and in particular, it raises their probability of exporting. Mean characteristics of firms, such as employment, sales or productivity, change along the two examined dimensions. Implications & Recommendations: Our results firmly support the postulates of the heterogeneous firms’ trade theory. The results strongly support the introduction of a new type of economic policy in which internationalisation promotion and innovation promotion are simultaneously targeted at the level of a firm. Contribution & Value Added: We extensively analyse innovation and internationalisation intensities for manufacturing firms from Poland. Using a logit model we show their impact on the likelihood of exporting. We furthermore apply the classification of exporting firms along temporal and geographical dimensions identifying main features and links to the key dimensions.

Keywords: innovation intensity; Internationalisation intensity; firms heterogeneity; logit model; Poland (search for similar items in EconPapers)
JEL-codes: F14 O31 C21 C26 (search for similar items in EconPapers)
Date: 2017
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Entrepreneurial Business and Economics Review is currently edited by Krzysztof Wach, PhD, hab.

More articles in Entrepreneurial Business and Economics Review from Centre for Strategic and International Entrepreneurship of the Faculty of Economics and International Relations at the Cracow University of Economics. EBER Journal Cracow University of Economics Faculty of Economics and International Relations Centre for Strategic and International Entrepreneurship ul. Rakowicka 27 31-510 Krakow Poland. Contact information at EDIRC.
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Handle: RePEc:krk:eberjl:v:5:y:2017:i:1:p:91-109