The Role of Internationalization as a Determinant of Innovation Performance: An Analysis of 42 Countries

33 Pages Posted: 23 Jul 2012

See all articles by Andrea Filippetti

Andrea Filippetti

Italian National Research Council (CNR-ISSIRFA); London School of Economics & Political Science (LSE); University of London - Birkbeck College

Marion Frenz

Birkbeck, University of London

Grazia Ietto-Gillies

South Bank University, London, UK

Date Written: July 20, 2012

Abstract

This paper analyses the impact of internationalization on the innovation performance of 42 countries. Innovation performance – the dependent variable – is measured by the number of triad patents and PCT applications that originate from a country. The following internationalization variables – independent variables – are used: inward and outward stock of FDI, exports and imports as well as the number of parent companies in a country. Information on patents and the internationalization variables, together with further explanatory variables, including the number of scientific articles and of Internet users in a country, are collected for the years 1990 to 2008. The analysis is done for all countries together and then for two groups of countries clustered on the basis of their GDP per capita. The paper finds support for a positive impact of internationalization on countries’ innovation performance. Our analyses suggest that competing in international markets via outward FDI and exports increases the scope of learning and the need to innovate. We find evidence of a negative relationship between patenting and inward FDI as well as imports.

Keywords: innovation, internationalization, patents, foreign direct investment, trade, number of parent transnational corporations

JEL Classification: F10, F23, L8, 03

Suggested Citation

Filippetti, Andrea and Frenz, Marion and Ietto-Gillies, Grazia, The Role of Internationalization as a Determinant of Innovation Performance: An Analysis of 42 Countries (July 20, 2012). Available at SSRN: https://ssrn.com/abstract=2114289 or http://dx.doi.org/10.2139/ssrn.2114289

Andrea Filippetti (Contact Author)

Italian National Research Council (CNR-ISSIRFA) ( email )

Via dei Taurini, 19
00185 Rome
Italy

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

University of London - Birkbeck College ( email )

Malet Street
London, WC1E 7HX
United Kingdom

Marion Frenz

Birkbeck, University of London ( email )

Malet Street
London, WC1E 7HX
United Kingdom

Grazia Ietto-Gillies

South Bank University, London, UK ( email )

103 Borough Road
London SE1 0AA
United Kingdom

HOME PAGE: http://www.sbu.ac.uk/cibs/ietto-gillies/index.html

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