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Internationalisation, innovation and productivity: how do firms differ in Italy?

Castellani, D. and Zanfei, A. (2007) Internationalisation, innovation and productivity: how do firms differ in Italy? World Economy, 30 (1). pp. 156-176. ISSN 0378-5920

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To link to this item DOI: 10.1111/j.1467-9701.2007.00875.x

Abstract/Summary

This paper addresses the issue of intra-industry heterogeneity and internationalisation. We show that, after controlling for sector, location, firm age and size, Italian manufacturing companies exhibit different economic and innovative performance according to their involvement in foreign activities. In particular, exporters show intermediate innovative performance between non-internationalised firms and those carrying out foreign production. Multinationals with a lower commitment to foreign markets, i.e. with non-manufacturing activities abroad only, exhibit a higher productivity than exporters but they do not appear to innovate more than the latter. Heterogeneity in productivity is robust to controlling for innovation inputs and outputs, suggesting that the difference in economic performance cannot be entirely attributed to different innovative activities, and that the involvement in international operations can be a distinct channel of knowledge accumulation.

Item Type:Article
Refereed:Yes
Divisions:Henley Business School > International Business and Strategy
ID Code:44410
Publisher:Wiley

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