Exporting, R&D, and absorptive capacity in UK establishments

Richard Harris, Qian Cher Li

Research output: Contribution to journalArticle

105 Citations (Scopus)

Abstract

This paper models the determinants of exporting (both in terms of export propensity and export intensity), with a particular emphasis on the importance of absorptive capacity and the endogenous link between exporting and undertaking R&D. Based on a merged dataset of the 2001 Community Innovation Survey and the 2000 Annual Respondents Database for the UK, our results suggest that establishment size plays a fundamental role in explaining exporting. Meanwhile, alongside other factors, undertaking R&D activities and having greater absorptive capacity (for scientific knowledge, international co-operation, and organizational structure) significantly reduce entry barriers into export markets, having controlled for self-selectivity into exporting. Nevertheless, conditional on entry into international markets, only greater absorptive capacity (associated with scientific knowledge) seems to further boost export performance in such markets, whereas spending on R&D no longer has an impact on exporting behaviour once we have taken into account its endogenous nature.
LanguageEnglish
Pages74-103
Number of pages29
JournalOxford Economic Papers
Volume61
Issue number1
DOIs
Publication statusPublished - Jan 2009

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Absorptive capacity
Exporting
Scientific knowledge
Export performance
Entry barriers
Data base
Factors
Selectivity
Community Innovation Survey
International market entry
Export intensity
Establishment size
International cooperation
Export markets
Organizational structure
Propensity

Keywords

  • firms
  • export
  • productivity
  • trade
  • performance
  • innovation

Cite this

Harris, Richard ; Li, Qian Cher. / Exporting, R&D, and absorptive capacity in UK establishments. In: Oxford Economic Papers. 2009 ; Vol. 61, No. 1. pp. 74-103.
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Exporting, R&D, and absorptive capacity in UK establishments. / Harris, Richard; Li, Qian Cher.

In: Oxford Economic Papers, Vol. 61, No. 1, 01.2009, p. 74-103.

Research output: Contribution to journalArticle

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