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E-ISSN 2500-2597

Leonid Gokhberg

Hein Roelfsema 1, Yi Zhang 2
  • 1 Utrecht University School of Economics, Kriekenpitplein 21-22 3584 EC, Utrecht, the Netherlands
  • 2 Jinhe Center for Economic Research, Xi’an Jiaotong University , Xi’an, Shaanxi, P.R. China

Internationalization and Innovation in Emerging Markets

2018. Vol. 12. No. 3. P. 34–42 [issue contents]

With high growth on domestic markets, many firms in emerging economies face a tradeoff between using their competitive advantages in foreign markets or innovating in domestic markets. By analyzing export and innovation data for a large dataset of Chinese firms, we uncover a specific productivity sorting pattern of firms over exporting and innovation. As expected, high productivity firms both export and innovate and low productivity firms do not export or innovate. Interestingly, low-medium productivity firms export more than they innovate, whereas high-medium productivity firms innovate more than they export. Clearly, these findings have important implications for the new trade literature that stresses the primacy of high productivity for entry into export markets.

Citation: Roelfsema H., Zhang Y. (2018) Internationalization and Innovation in Emerging Markets. Foresight and STI Governance, vol. 12, no 3, pp. 34–42.
DOI: 10.17323/2500-2597.2018.3.34.42
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