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Exporting, R&D and Absorptive Capacity in UK Establishments: Evidence from the 2001 Community Innovation Survey

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  • Qian Li
  • Richard Harris

Abstract

This paper models the determinants of exporting (both export propensity and export intensity), with a particular emphasis on the importance of absorptive capacity and the endogenous link between exporting and 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 alongside other factors, undertaking R&D activities and having greater absorptive capacity (for scientific knowledge, co-operation with international organisations, and organisational structure and HRM practices) significantly reduce entry barriers into export markets, having controlled for selfselectivity into exporting and the endogenous link between exporting and R&D. Nevertheless, conditional on entry, only greater absorptive capacity (for scientific knowledge) seems to further boost export performance in international markets, whereas spending on R&D no longer has an impact on exporting behaviour once we have taken into account its endogenous nature.
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  • Qian Li & Richard Harris, 2006. "Exporting, R&D and Absorptive Capacity in UK Establishments: Evidence from the 2001 Community Innovation Survey," EcoMod2006 272100051, EcoMod.
    • Handle: RePEc:ekd:002721:272100051
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    3. Gans Joshua S & King Stephen P, 2003. "The Neutrality of Interchange Fees in Payment Systems," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-18, January.

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    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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