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Title Global Engagement and the Innovation Activities of Firms
Author Chiara Criscuolo, Jonathan Haskel, Matthew Slaughter
Year 2006
Abstract Firms that export or, even more so, are part of a multinational enterprise tend to exhibit higher productivity than their purely domestic counterparts. A very active research area is currently attempting to better understand this correlation, and productivity dispersion more generally. We contribute to this work by incorporating the perspective of industrial organization that one of the main drivers of differences in productivity is differences in knowledge. We examine a new data set of several thousand U.K. enterprises covering all industries from 1994 through 2000. For each enterprise we have multiple detailed measures of knowledge outputs, knowledge investments, and sources of information from existing knowledge. We find that globally engaged firms do innovate more. But this is not just because globally engaged firms use more researchers. It is also because they learn more from more sources such as suppliers and customers, universities, and their intra-firm worldwide pool of information. We also find that the relative importance of knowledge sources varies systematically with the type of innovation.
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Chiara Criscuolo & Jonathan E. Haskel & Matthew J. Slaughter, 2005. "Global Engagement and the Innovation Activities of Firms," NBER Working Papers 11479, National Bureau of Economic Research, Inc
Topic revision: r2 - 23 Jan 2007, ChiaraCriscuolo
 

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