Library Header Image
LSE Research Online LSE Library Services

Internationalization and innovation of firms: evidence and policy

Altomonte, Carlo, Aquilante, Tommaso, Békés, Gábor and Ottaviano, Gianmarco I. P. (2013) Internationalization and innovation of firms: evidence and policy. Economic Policy, 28 (76). pp. 663-700. ISSN 0266-4658

PDF - Accepted Version
Download (658kB) | Preview

Identification Number: 10.1111/1468-0327.12020


We use a representative and cross-country comparable sample of manufacturing firms (EFIGE) to document patterns of interaction among firm-level internationalization, innovation and productivity across seven European countries (Austria, France, Germany, Hungary, Italy, Spain, United Kingdom). We find strong evidence of positive association among the three firm-level characteristics across countries and sectors. We also find that the positive correlation between internationalization and innovation survives after controlling for productivity, with some evidence of causality running from the latter to the former. Our analysis suggests that export promotion per se is unlikely to lead to sustainable internationalization because internationalization goes beyond export and because, in the medium to long term, internationalization is likely driven by innovation. We recommend coordination and integration of internationalization and innovation policies 'under one roof' at both the national and EU levels, and propose a bigger coordinating role for EU institutions.

Item Type: Article
Official URL:
Additional Information: © 2013 CEPR, CES, MSH
Divisions: Economics
Centre for Economic Performance
Subjects: H Social Sciences > HD Industries. Land use. Labor
Date Deposited: 12 Dec 2013 14:46
Last Modified: 20 Oct 2021 02:05
Funders: European Commission's Seventh Framework Programme (contract number 225551), Federatie van Nederlandse Ruitersportcentra, European Firms in a Global Economy: Internal policies for external competitiveness (EFIGE)

Actions (login required)

View Item View Item


Downloads per month over past year

View more statistics