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Which Portuguese firms are more innovative? The importance of multinationals and exporters

Author

Listed:
  • Armando Silva

    (Faculdade de Economia, Universidade do Porto)

  • Ana Paula Africano

    (CEF.UP, Faculdade de Economia, Universidade do Porto)

  • Oscar Afonso

    (CEFUP, OBEGEF, Faculdade de Economia, Universidade do Porto)

Abstract
In this study we test the trade Global Engagement hypothesis in which firms more globally engaged – either multinationals or exporters – are more innovative. The test is applied to 4818 Portuguese enterprises´ data for the period 2002-2004 through the use of the fourth Portuguese Community Innovation Survey. We estimated several Knowledge Production Functions assuming that knowledge outputs result from the combination of some knowledge inputs with the flow of ideas coming from existing stock of knowledge. We found that more internationally exposed firms create more knowledge output, than their domestic counterparts; indeed, more globalized firms use more inputs and have the opportunity to use a larger stock of knowledge. Notwithstand, the observed superiority of more internationally exposed firms is also the result of their globalized nature, not directly connected with knowledge inputs or information flows.

Suggested Citation

  • Armando Silva & Ana Paula Africano & Oscar Afonso, 2009. "Which Portuguese firms are more innovative? The importance of multinationals and exporters," FEP Working Papers 326, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:326
    as

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    File URL: http://www.fep.up.pt/investigacao/workingpapers/09.06.05_wp326.pdf
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    References listed on IDEAS

    as
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    2. Veugelers, Reinhilde & Cassiman, Bruno, 1999. "Make and buy in innovation strategies: evidence from Belgian manufacturing firms," Research Policy, Elsevier, vol. 28(1), pages 63-80, January.
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    More about this item

    Keywords

    Multinational firms; exporting; knowledge-production functions; Portugal;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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