Internationalization and Innovation in Emerging Markets
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 so...
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| Format: | Article |
| Language: | English |
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National Research University Higher School of Economics
2018-09-01
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| Series: | Foresight and STI Governance |
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| Online Access: | https://foresight-journal.hse.ru/article/view/19358 |
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| author | Hein Roelfsema Yi Zhang |
| author_facet | Hein Roelfsema Yi Zhang |
| author_sort | Hein Roelfsema |
| collection | DOAJ |
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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.
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| format | Article |
| id | doaj-art-5474c79189e84e5d82719bd6a5f8c87a |
| institution | DOAJ |
| issn | 2500-2597 |
| language | English |
| publishDate | 2018-09-01 |
| publisher | National Research University Higher School of Economics |
| record_format | Article |
| series | Foresight and STI Governance |
| spelling | doaj-art-5474c79189e84e5d82719bd6a5f8c87a2025-08-20T03:16:47ZengNational Research University Higher School of EconomicsForesight and STI Governance2500-25972018-09-0112310.17323/2500-2597.2018.3.34.42Internationalization and Innovation in Emerging MarketsHein Roelfsema0Yi Zhang1Utrecht University School of Economics, Kriekenpitplein 21-22 3584 EC, Utrecht, the NetherlandsJinhe Center for Economic Research, Xi’an Jiaotong University , Xi’an, Shaanxi, P.R. China 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. https://foresight-journal.hse.ru/article/view/19358innovationinternationalizationemerging marketsstrategic choicenew trade theoryprofits/productivity linkage |
| spellingShingle | Hein Roelfsema Yi Zhang Internationalization and Innovation in Emerging Markets Foresight and STI Governance innovation internationalization emerging markets strategic choice new trade theory profits/productivity linkage |
| title | Internationalization and Innovation in Emerging Markets |
| title_full | Internationalization and Innovation in Emerging Markets |
| title_fullStr | Internationalization and Innovation in Emerging Markets |
| title_full_unstemmed | Internationalization and Innovation in Emerging Markets |
| title_short | Internationalization and Innovation in Emerging Markets |
| title_sort | internationalization and innovation in emerging markets |
| topic | innovation internationalization emerging markets strategic choice new trade theory profits/productivity linkage |
| url | https://foresight-journal.hse.ru/article/view/19358 |
| work_keys_str_mv | AT heinroelfsema internationalizationandinnovationinemergingmarkets AT yizhang internationalizationandinnovationinemergingmarkets |