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Innovation intensity as a driver of firm’s internationalization intensity: evidence for Poland

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  • Tomasz Brodzicki

Abstract

The aim of the article is an empirical identification of the relationship between the extent of innovation and the extent of internation- alization in the cross-sectional sample of firms from Poland. Firstly, both extents of innovation and of internationalization are defined, calculated and analyzed separately and then jointly. The mean changing characteristics of companies along two dimensions are depicted. Secondly, the nexus between internationalization and innovation is econometrically analyzed with the use of OLS, MNL, OL, and IV models. Thirdly, the role of both in the likelihood of firm-exports is assessed in a logit model.The obtained results are in line with the postulates of the firm heterogeneity theory. Productivity seems to be a principal driver of firm exports and firm internationalization. Positive correlation between innovation and internationalization extents is robust with the majority of firm’s inferior performance in both dimensions and, in particular, in comparison to the Western European counterparts. The joint distribution along the two analyzed dimensions shows a pyramidal structure with a peak at low levels of internationalization and innovation. There is some support for the causality going from innovation to internationalization. However, more research is necessary for a panel setting to verify this statement thoroughly.

Suggested Citation

  • Tomasz Brodzicki, 2016. "Innovation intensity as a driver of firm’s internationalization intensity: evidence for Poland," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 46.
    • Handle: RePEc:eko:ekoeko:46_11
    DOI: 10.17451/eko/46/2016/241
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    Cited by:

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    2. Tomasz Brodzicki, 2017. "Internationalisation and Innovation Intensities of Polish Manufacturing Firms: A Close Nexus?," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(1), pages 91-109.
    3. Andrzej Cieślik & Jan Jakub Michałek, 2017. "Innovation Forms and Firm Export Performance: Empirical Evidence from ECA Countries," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 5(2), pages 85-99.

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