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The Relationship Between R&D and Exports in Goods and Services of Firms in the Netherlands: An Empirical Analysis

Author

Listed:
  • Iryna Rud

    (Statistics Netherlands (CBS))

  • Mark Vancauteren

    (Statistics Netherlands (CBS)
    Hasselt University)

  • Hendrik W.H. Roekel

    (Statistics Netherlands (CBS))

  • Michael Polder

    (Statistics Netherlands (CBS))

Abstract

This study investigates the relationship between R&D investments and exports of firms in the Netherlands. The results reveal complementarity between these two activities. The channel from exports to R&D appears to be stronger than the other way around. Comparing sectors, the results point out that complementarity is particularly salient among non-manufacturing firms. Differences in this relationship are also found by the type of export: service exports and R&D reinforce each other, whereas in the case of goods exports a positive effect was observed only from exports to R&D, but not in the opposite direction. Furthermore, exports of domestically produced goods (as opposed to re-exports), and exports to non-EU countries (as opposed to exports to EU countries), are found to be strongly positively related to R&D investments. Finally, looking across firm characteristics we conclude that (i) investing in R&D has higher returns in terms of export value for more productive firms; (ii) SME firms investing in R&D get more returns in terms of export than larger firms; (iii) export activities have a stronger effect on R&D investments for larger firms. Overall, our findings highlight the importance of considering spillover effects between R&D investments and export activities in designing policies related to R&D and international trade.

Suggested Citation

  • Iryna Rud & Mark Vancauteren & Hendrik W.H. Roekel & Michael Polder, 2023. "The Relationship Between R&D and Exports in Goods and Services of Firms in the Netherlands: An Empirical Analysis," Journal of Industry, Competition and Trade, Springer, vol. 23(3), pages 283-308, December.
    • Handle: RePEc:kap:jincot:v:23:y:2023:i:3:d:10.1007_s10842-023-00405-2
    DOI: 10.1007/s10842-023-00405-2
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