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Productivity, Growth, and Internationalisation: The Case of German and British High Techs

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  • Fryges, Helmut

Abstract

International engagement is often expected to improve firm performance. Especially for small technology-oriented firms, export activities may be important, being regarded as one way to amortise these firms? high product research and development costs. This paper examines the relationship between international business activities and firm performance using a sample of about 200 young high-tech firms in Germany and the UK that were contacted by two surveys in 1997 and 2003. I find out that the performance enhancing effects of internationalisation that were still observed in 1997 are in fact restricted to an early stage of the firms? life cycles and disappear when technology-oriented firms become mature. The results are in line with many other studies: Firms exhibiting superior performance are or will become exporters.

Suggested Citation

  • Fryges, Helmut, 2004. "Productivity, Growth, and Internationalisation: The Case of German and British High Techs," ZEW Discussion Papers 04-79, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:2884
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    Cited by:

    1. Rammer, Christian & Schmiele, Anja, 2008. "Drivers and Effects of Internationalising Innovation by SMEs," ZEW Discussion Papers 08-035 [rev.], ZEW - Leibniz Centre for European Economic Research.
    2. Jens M. Arnold & Katrin Hussinger, 2010. "Exports versus FDI in German Manufacturing: Firm Performance and Participation in International Markets," Review of International Economics, Wiley Blackwell, vol. 18(4), pages 595-606, September.
    3. Pietro Moncada-Paterno-Castello & Peter Voigt & Marco Vivarelli, 2011. "Evolution of Globalised business R&D: Features, drivers, impacts," JRC Working Papers on Corporate R&D and Innovation 2011-02, Joint Research Centre.
    4. M. Kirbach & C. Schmiedeberg, 2008. "Innovation And Export Performance: Adjustment And Remaining Differences In East And West German Manufacturing," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(5), pages 435-457.
    5. Fryges, Helmut, 2006. "The Export-Growth Relationship: Estimating a Dose-Response Function," ZEW Discussion Papers 06-028, ZEW - Leibniz Centre for European Economic Research.
    6. De Maeseneire, Wouter & Claeys, Tine, 2012. "SMEs, foreign direct investment and financial constraints: The case of Belgium," International Business Review, Elsevier, vol. 21(3), pages 408-424.

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    More about this item

    Keywords

    High technology industries; internationalisation; firm growth; productivity; switching;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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