External R&D, productivity, and export: evidence from Japanese firms

Banri Ito and Ayumu Tanaka

Review of World Economics (Weltwirtschaftliches Archiv), 2016, vol. 152, issue 3, No 6, 577-596

Abstract: Abstract This study theoretically and empirically examines the productivity sorting pattern of the joint decisions related to research and development (R&D) strategies and exporting status using a simple theoretical framework that extends the firm heterogeneity model to account for both internal (a firm’s own R&D) and external (outsourcing R&D or technology purchase) R&D strategies. The empirical results from the nonparametric and semiparametric methods using Japanese firm-level data show that exporting firms engaged in R&D activities are more productive than non-exporters and exporters with no R&D, regardless of whether internal or external R&D strategy is adopted; further, exporters that employ both the R&D strategies are the most productive. The results suggest that the external R&D strategy is complementary to the in-house R&D strategy and is crucial for promoting the innovations of internationalized firms.

Keywords: R&D; Productivity; Firm heterogeneity; Nonparametric tests (search for similar items in EconPapers)
JEL-codes: F12 F14 O32 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10290-015-0240-y

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