Innovation intensity as a driver of firm’s internationalization intensity. Evidence for Poland

Tomasz Brodzicki

Abstract


The aim of the article is an empirical identification of the relationship between the extent of innovation and the extent of internationalization in our cross-sectional a sample of Polish firms. In the analysis we follow the empirical approach adopted by Altomonte et al. (2013), treating it as a benchmark analysis but extending it in some dimensions and leading to similar results obtained from the EFIGE dataset for several European states. In particular, we broaden the notions of innovation and internationalization extents.

The obtained results are in line with the postulates of the firm heterogeneity theory. Firm heterogeneity is substantial. Productivity seems to be a principal driver of firm exports and firm internationalization. Positive correlation between innovation and internationalization extents is robust with the majority of Polish firms inferior performance in both dimensions. There is some support for the causality going from innovation to internationalization. However, more research is necessary for a panel setting to verify this statement fully.


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DOI: http://dx.doi.org/10.17451/eko/46/2016/241

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