The Impact of R&D Activities on Exports of German Business Services Enterprises: First Evidence from a Continuous Treatment Approach

14 Pages Posted: 17 Apr 2015

See all articles by Helmut Fryges

Helmut Fryges

Technopolis Group; University of Tasmania - Australian Innovation Research Centre; Center for European Economic Research (ZEW)

Alexander Vogel

Leuphana University of Lueneburg

Joachim Wagner

University of Lueneburg - Institute of Economics; Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics; IZA Institute of Labor Economics

Date Written: April 2015

Abstract

This study uses newly available representative data from German business services firms and a continuous treatment approach based on the generalised propensity score to test for a causal effect of R&D activities (measured by the share of engineers and natural scientists in all employees) on the share of exports in total sales. We find evidence for a positive and statistically significant but small causal effect. This result is in line with the (non‐causal) results reported in Innovation, Globalization and Firm Dynamics. Lessons for Enterprise Policy, New York, Routledge, 2014 and 137, based on regression models with and without control for unobserved time‐invariant firm characteristics. The bottom line, then, is that R&D activity does matter for success of German business services firms on export markets – but not much.

Suggested Citation

Fryges, Helmut and Vogel, Alexander and Wagner, Joachim, The Impact of R&D Activities on Exports of German Business Services Enterprises: First Evidence from a Continuous Treatment Approach (April 2015). The World Economy, Vol. 38, Issue 4, pp. 716-729, 2015, Available at SSRN: https://ssrn.com/abstract=2595426 or http://dx.doi.org/10.1111/twec.12177

Helmut Fryges (Contact Author)

Technopolis Group ( email )

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University of Tasmania - Australian Innovation Research Centre ( email )

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Alexander Vogel

Leuphana University of Lueneburg ( email )

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Joachim Wagner

University of Lueneburg - Institute of Economics ( email )

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IZA Institute of Labor Economics

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