TY - JOUR
T1 - Firm's Choice between Export and R&D and its Effect on the Firm's Productivity and Survival
AU - Aw, Bee Yan
AU - Song, Backhoon
PY - 2013/9
Y1 - 2013/9
N2 - This paper examines the nature and process of technology upgrade among firms in South Korea and the underlying productivity dynamics by using micro panel data. In this paper, we see important aspects of the firm's behaviour on improving its productivity through internal and external knowledge creation activities represented by research and development (R&D) and export, respectively. Our results indicate that the level of a firm's productivity plays an important role in determining its decision on R&D investment and export. In addition, a firm's experiences involved exporting and/or investment in R&D increase the probability of its current decision on export and/or R&D investment. Firms that either export or invest in R&D show significantly high productivity level than other firms that do not involve in any of two activities. Furthermore, firms that export and invest in R&D simultaneously are more likely to have higher productivity than firms that only participate in one of two activities. These findings are consistent with the hypothesis of compounding effects of two types of knowledge creations, R&D and export.
AB - This paper examines the nature and process of technology upgrade among firms in South Korea and the underlying productivity dynamics by using micro panel data. In this paper, we see important aspects of the firm's behaviour on improving its productivity through internal and external knowledge creation activities represented by research and development (R&D) and export, respectively. Our results indicate that the level of a firm's productivity plays an important role in determining its decision on R&D investment and export. In addition, a firm's experiences involved exporting and/or investment in R&D increase the probability of its current decision on export and/or R&D investment. Firms that either export or invest in R&D show significantly high productivity level than other firms that do not involve in any of two activities. Furthermore, firms that export and invest in R&D simultaneously are more likely to have higher productivity than firms that only participate in one of two activities. These findings are consistent with the hypothesis of compounding effects of two types of knowledge creations, R&D and export.
KW - firm survival
KW - productivity growth
KW - R&D and export decision
UR - http://www.scopus.com/inward/record.url?scp=84885395170&partnerID=8YFLogxK
U2 - 10.1080/1226508X.2013.833848
DO - 10.1080/1226508X.2013.833848
M3 - Article
AN - SCOPUS:84885395170
SN - 1226-508X
VL - 42
SP - 291
EP - 310
JO - Global Economic Review
JF - Global Economic Review
IS - 3
ER -