Baum, C.F., Caglayan, M. and Talavera, O. (2015) R&D Expenditures and Geographical Sales Diversification. Manchester School. ISSN 1463-6786
Abstract
This paper empirically examines the role of diversification in export markets on firm-level R&D activities taking account of the potential endogeneity in this relationship. We show that geographical sales diversification across different regions of the world induces UK firms to increase their R&D expenditures, as firms must innovate and develop new products to maintain a competitive edge over their rivals. This finding is robust to a battery of sensitivity checks. Furthermore, we find that R&D expenditures cause higher export sales but do not cause export sales diversification. Hence, the result that diversification causes higher R&D activity is not driven by reverse causality.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2015 The University of Manchester and John Wiley & Sons Ltd. This is an author produced version of a paper subsequently published in The Manchester School. Uploaded in accordance with the publisher's self-archiving policy. |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 02 Feb 2016 14:44 |
Last Modified: | 12 Apr 2017 05:59 |
Published Version: | http://dx.doi.org/10.1111/manc.12092 |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1111/manc.12092 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:92704 |