IDEAS home Printed from https://ideas.repec.org/a/taf/indinn/v18y2011i5p437-459.html
   My bibliography  Save this article

Are Innovation and Internationalization Related? An Analysis of European Countries

Author

Listed:
  • Andrea Filippetti
  • Marion Frenz
  • Grazia Ietto-Gillies

Abstract

This paper examines the relationship between countries' international profile and their innovation performance using data for 32 European countries. The overall contribution of the paper lies in: (a) an in-depth exploration of empirical correlations between innovation and several indicators of internationalization; and (b) the use of theoretical arguments—backed up by the literature—on why the observed correlations are not spurious but indicative of possible causality. Indicators of internationalization are considered with respect to each country as aggregate, to its technology-intensive industries only, and in relation to the share of its firms reporting international activities. On the basis of the empirical results, and the theoretical arguments presented, the paper suggests that underpinning the association is a virtuous (or vicious) circle: innovative firms are more successful in competing internationally and the exposure to alternative business and innovation contexts leads to innovation.

Suggested Citation

  • Andrea Filippetti & Marion Frenz & Grazia Ietto-Gillies, 2011. "Are Innovation and Internationalization Related? An Analysis of European Countries," Industry and Innovation, Taylor & Francis Journals, vol. 18(5), pages 437-459.
  • Handle: RePEc:taf:indinn:v:18:y:2011:i:5:p:437-459
    DOI: 10.1080/13662716.2011.583461
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/13662716.2011.583461
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/13662716.2011.583461?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John Salt, 1997. "International Movements of the Highly Skilled," OECD Social, Employment and Migration Working Papers 3, OECD Publishing.
    2. Davide Castellani & Antonello Zanfei, 2006. "Multinational Firms, Innovation and Productivity," Books, Edward Elgar Publishing, number 3709.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martínez-Román, Juan A. & Gamero, Javier & Delgado-González, María de Loreto & Tamayo, Juan A., 2019. "Innovativeness and internationalization in SMEs: An empirical analysis in European countries," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    2. Andrea Filippetti & Marion Frenz & Grazia Ietto-Gillies, 2013. "The Role of Internationalization as a Determinant of Innovation Performance. An Analysis of 42 Countries," Working Papers 10, Birkbeck Centre for Innovation Management Research, revised Jan 2013.
    3. Anabela Santos & Michele Cincera & Paulo Neto & Maria Manuel Serrano, 2019. "How internationalization and competitiveness contribute to get public support to innovation? The Portuguese case," GEE Papers 0121, Gabinete de Estratégia e Estudos, Ministério da Economia, revised May 2019.
    4. Małgorzata Stefania Lewandowska & Tomasz Gołębiowski & Maja Szymura-Tyc & Małgorzata Rószkiewicz, 2017. "Komplementarność innowacji a eksport nowych produktów," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 95-117.
    5. Parrilli, Mario Davide & Alcalde Heras, Henar, 2016. "STI and DUI innovation modes: Scientific-technological and context-specific nuances," Research Policy, Elsevier, vol. 45(4), pages 747-756.
    6. Hsin-Ning Su, 2017. "Global Interdependence of Collaborative R&D-Typology and Association of International Co-Patenting," Sustainability, MDPI, vol. 9(4), pages 1-28, April.
    7. Anabela Santos & Michele Cincera & Paulo Neto & Maria Manuel Serrano, 2019. "Which projects are selected for an innovation subsidy? The Portuguese case," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 18(3), pages 165-202, October.
    8. Grazia Ietto-Gillies, 2011. "Strategies of Transnational Companies in the Context of the Governance Systems of Nation-states," Chapters, in: Mehmet Ugur & David Sunderland (ed.), Does Economic Governance Matter?, chapter 5, Edward Elgar Publishing.
    9. Lewandowska, Małgorzata Stefania & Szymura-Tyc, Maja & Gołębiowski, Tomasz, 2016. "Innovation complementarity, cooperation partners, and new product export: Evidence from Poland," Journal of Business Research, Elsevier, vol. 69(9), pages 3673-3681.
    10. Márkus, Gábor & Rideg, András, 2021. "A magyar mikro-, kis- és középvállalatok versenyképessége és pénzügyi teljesítménye [Modelling and empirical analysis of relations between the competence-based competitiveness and financial perform," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 617-644.
    11. Fabio Distefano & Giacomo Gambillara & Alberto Di Minin, 2016. "Extending the Innovation Paradigm: a Double ‘I’ Environment and Some Evidence from BRIC Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(1), pages 126-154, March.
    12. Singh, Rashmeet & Chandrashekar, Deepak & Subrahmanya Mungila Hillemane, Bala & Sukumar, Arun & Jafari-Sadeghi, Vahid, 2022. "Network cooperation and economic performance of SMEs: Direct and mediating impacts of innovation and internationalisation," Journal of Business Research, Elsevier, vol. 148(C), pages 116-130.
    13. Marco Grazzi & Nanditha Mathew & Daniele Moschella, 2021. "Making one’s own way: jumping ahead in the capability space and exporting among Indian firms," Journal of Evolutionary Economics, Springer, vol. 31(3), pages 931-957, July.
    14. Yoruk, Deniz E. & Bunduchi, Raluca & Yoruk, Esin & Crișan-Mitra, Catalina & Salanță, Irina-Iulia & Crișan, Emil Lucian, 2021. "Pathways to innovation in Romanian software SMEs: Exploring the impact of interdependencies between internationalisation and knowledge sources," Journal of International Management, Elsevier, vol. 27(4).
    15. Joan Freixanet, 2014. "Innovation and internationalization: relationship and implications for management and public policy," International Journal of Entrepreneurial Knowledge, Center for International Scientific Research of VSO and VSPP, vol. 2(2), pages 57-75, December.
    16. Purkayastha, Anish & Kumar, Vikas & Gupta, Vishal K., 2021. "Emerging market internationalizing firms: Learning through internationalization to achieve entrepreneurial orientation," Journal of World Business, Elsevier, vol. 56(5).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria Cipollina & Giorgia Giovannetti & Filomena Pietrovito & Alberto F. Pozzolo, 2012. "FDI and Growth: What Cross-country Industry Data Say," The World Economy, Wiley Blackwell, vol. 35(11), pages 1599-1629, November.
    2. Cristina Chaminade & Monica Plechero, 2015. "Do Regions Make a Difference? Regional Innovation Systems and Global Innovation Networks in the ICT Industry," European Planning Studies, Taylor & Francis Journals, vol. 23(2), pages 215-237, February.
    3. Davide Castellani & Giovanni Marin & Sandro Montresor & Antonello Zanfei, 2020. "Foreign Direct Investments and Regional Specialization in Environmental Technologies," SEEDS Working Papers 0620, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Apr 2020.
    4. David Coleman & Robert Rowthorn, 2004. "The Economic Effects of Immigration into the United Kingdom," Population and Development Review, The Population Council, Inc., vol. 30(4), pages 579-624, December.
    5. Argentino Pessoa, 2008. "Multinational Corporations, Foreign Investment, and Royalties and License Fees: Effects on Host-Country Total Factor Productivity," Notas Económicas, Faculty of Economics, University of Coimbra, issue 28, pages 6-31, December.
    6. Santangelo, Grazia D., 2018. "The impact of FDI in land in agriculture in developing countries on host country food security," Journal of World Business, Elsevier, vol. 53(1), pages 75-84.
    7. Frenz, Marion & Ietto-Gillies, Grazia, 2009. "The impact on innovation performance of different sources of knowledge: Evidence from the UK Community Innovation Survey," Research Policy, Elsevier, vol. 38(7), pages 1125-1135, September.
    8. Dirk Czarnitzki & Julie Delanote, 2017. "Incorporating innovation subsidies in the CDM framework: empirical evidence from Belgium," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(1-2), pages 78-92, February.
    9. F. Güzin AĞCA-VAROĞLU, 2020. "The Everyday Life Experiences and Coping Processes of Highly Skilled Immigrants in Germany," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 62(62), pages 23-46, December.
    10. Martín Obaya, 2015. "Technological learning in MNC subsidiaries operating in regional integration processes: a case study on an automotive company in MERCOSUR," Globelics Working Paper Series 2015-02, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management.
    11. Cristiano Perugini & Fabrizio Pompei & Marcello Signorelli, 2008. "FDI, R&D and human capital in Central and Eastern European countries," Post-Communist Economies, Taylor & Francis Journals, vol. 20(3), pages 317-345.
    12. Riccardo Crescenzi & Nancy Holman & Enrico Orru’, 2017. "Why do they return? Beyond the economic drivers of graduate return migration," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(3), pages 603-627, November.
    13. Mariachiara Barzotto & Giancarlo Corò & Ilaria Mariotti & Marco Mutinelli, 2019. "Ownership and workforce composition: a counterfactual analysis of foreign multinationals and Italian uni-national firms," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 46(4), pages 581-607, December.
    14. repec:lic:licosd:22709 is not listed on IDEAS
    15. Claudio Cozza & Antonello Zanfei, 2018. "Multinational firms and the creation of technological linkages in Italy," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 37(74), pages 429-442, July.
    16. repec:dau:papers:123456789/1808 is not listed on IDEAS
    17. Castellani, Davide & Pieri, Fabio, 2013. "R&D offshoring and the productivity growth of European regions," Research Policy, Elsevier, vol. 42(9), pages 1581-1594.
    18. Edward Malecki, 2010. "Global Knowledge and Creativity: New Challenges for Firms and Regions," Regional Studies, Taylor & Francis Journals, vol. 44(8), pages 1033-1052.
    19. Francesco Bogliacino & Giulio Perani & Mario Pianta & Stefano Supino, 2010. "Innovation and Development. The Evidence from Innovation Surveys," Working Papers of BETA 2010-13, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    20. Uros Delevic, . "Employment and state incentives in transition economies: are subsidies for FDI ineffective? The case of Serbia," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    21. Davide Castellani, 2017. "The Changing Geography of Innovation and the Role of Multinational Enterprises," John H Dunning Centre for International Business Discussion Papers jhd-dp2017-02, Henley Business School, University of Reading.
    22. Luisa Gagliardi & Simona Iammarino, 2017. "Innovation in risky markets. Multinational and domestic firms in the UK regions," Working Papers 37, Birkbeck Centre for Innovation Management Research, revised Mar 2017.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:indinn:v:18:y:2011:i:5:p:437-459. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CIAI20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.