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R&D and Exporting: A Comparison of British and Irish Firms

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Abstract

This paper investigates the two-way relationship between R&D and export activity. In particular, we concern ourselves with the question whether R&D stimulates exports and, perhaps more importantly, whether export activity leads to increasing innovative activity in terms of R&D (learning-by-exporting). We use two unique firm level databases for Great Britain and the Republic of Ireland and compare the results for these two countries. We find that previous exporting experience enhances the innovative capability of Irish firms. Conversely, no strong learning-by-exporting effects are found for British firms. Arguably part of the differences between Ireland and Britain are attributable to different, cross-country exporting patterns where Irish firms have a greater interface with OECD markets.

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Authors and Affiliations

  1. NUBS, University of Nottingham, University of Nottingham, United Kingdom

    Sourafel Girma

  2. Kiel Institute for the World Economy, Düsternbrooker Weg 120, 24105, Kiel, Germany

    Holger Görg & Aoife Hanley

  3. University of Kiel, Kiel, Germany

    Holger Görg & Aoife Hanley

  4. CEPR, London, United Kingdom

    Holger Görg

Authors
  1. Sourafel Girma
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  2. Holger Görg
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  3. Aoife Hanley
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Corresponding author

Correspondence to Holger Görg.

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JEL no.

F14, F23

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Girma, S., Görg, H. & Hanley, A. R&D and Exporting: A Comparison of British and Irish Firms. Rev World Econ 144, 750–773 (2008). https://doi.org/10.1007/s10290-008-0168-6

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  • DOI: https://doi.org/10.1007/s10290-008-0168-6

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