Global Engagement and the Innovation Activities of Firms

By Chiara Criscuolo, Jonathan Haskel, Matthew J. Slaughter. 2005

376 citations recorded by the source corpus.

Firms that export or, even more so, are part of a multinational enterprise tend to exhibit higher productivity than their purely domestic counterparts. To better understand this correlation, we incorporate 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 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.

Subfields: Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/ba8ee647ac8ccdab0ec686c0fe60fdd82678f89e

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Citations in the corpus

Importing, Exporting, and Innovation in Developing Countries (2009, neutral): “This variable has been analyzed in many studies such as Criscuolo, Haskel, and Slaughter (2010) and Almeida and Fernandes (2008).”
Remittances and Development: Lessons from Latin America (2008, background): “Roughly half of cross-country differences in per capita income are driven by differences in TFP, generally attributed to technological development and innovative capacity (Dollar and Wolff 1998; Hall and Jones 1999). According to Prescott (1998), one of the main candidates to explain large internati”
Foreign Direct Investment, Access to Finance, and Innovation Activity in Chinese Enterprises (2008, background): “Criscuolo et al. (2005) argue and provide evidence that firms that are active on export markets are more innovative and we allow for this by controlling for firms’ export intensities.”
R&D, product innovation, and exporting: evidence from UK new technology based firms (2011, methodology): “They combine data from the UK element of the CIS3 and the ARD, and perform estimations for both manufacturing and services.”
The role of headquarters in multinational profit shifting strategies (2014, background): “Empirical research, in turn, suggests that the contrary is true and R&D belongs to the least mobile functions within MNEs (see e.g. Abramovsky et al. 2008; Criscuolo et al. 2010).”
Foreign multinationals and domestic innovation: Intra-industry effects and firm heterogeneity (2015, background): “These positive effects have found broad support in recent empirical analyses, suggesting that foreign owned enterprises tend to be more productive, invest more in R&D and generate more knowledge (Castellani and Zanfei, 2007a; Dicken, 2007; Criscuolo et al., 2010) that can potentially be transmitted ”
The Impact of R&D Subsidies on Firm Innovation (2016, methodology): “In conclusion, we believe that our exercise shows 11 For instance, Crepon et al. (1998) and Criscuolo et al. (2010) use patents as an indicator of innovation output to estimate a knowledge production function; Aghion et al (2009) to assess the effect of firm entry on innovation performance of…”
Transfer Pricing by U.S.-Based Multinational Firms (2008, background): “Eden (1998) develops a series of models to describe managerial as well as tax and tariff effects on intrafirm prices when the firm sets a single transfer price.11 Capithorne (1971), Horst (1971), Samuelson (1982), Halperin and Srinidhi (1987), and Harris and Sansing (1998) examine the effect of…”
An international multilevel analysis of product innovation (2010, background): “Criscuolo et al. (2005) explore the determinants of firm innovation indicators, including product and process innovation, with firm data from the United Kingdom.”
Cross-Border M&As and Innovative Activity of Acquiring and Target Firms (2016, background): “…has focused on the effects of foreign ownership on productivity (see, for instance, Chen, 2011; Arnold and Javorcik, 2009), a recent strand of the literature emphasizes innovation as a key determinant of multinationals' productivity advantage (e.g. Guadalupe et al., 2012; Criscuolo et al., 2010).”