Stepping in and Out of the International Market: Internationalisation of Technology-Oriented Firms in Germany and the UK

38 Pages Posted: 15 Oct 2004 Last revised: 19 Feb 2015

See all articles by Helmut Fryges

Helmut Fryges

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

Date Written: 2004

Abstract

For small high-tech firms international orientation is regarded as crucial for growth and long-term survival. Even newly founded technology based firms (NTBFs) are often internationally active shortly after their inception ("born globals"). However, in order to create jobs and have a sustainable influence on (macro)economic development, continuous growth of NTBFs is needed and research must focus on the continuous role of internationalisation. Based on longitudinal data, this paper examines empirically the long-term internationalisation behaviour of German and British technology-oriented firms founded between 1987 and 1996. Applying logit models, I am able to identify firm-specific success factors that influence the probability of entry into and exit from the international market. The results show, for instance, that firms can overcome high entry costs by acquiring firm-specific assets. Similarly, firm-specific resources prevent high-tech companies from exiting the international market. The strategic role of investment in R&D is stressed in particular by the data.

Keywords: High technology industries, start-up, internationalisation

JEL Classification: F23, L20, L60, L80

Suggested Citation

Fryges, Helmut, Stepping in and Out of the International Market: Internationalisation of Technology-Oriented Firms in Germany and the UK (2004). ZEW - Centre for European Economic Research Discussion Paper No. 04-065, Available at SSRN: https://ssrn.com/abstract=604461 or http://dx.doi.org/10.2139/ssrn.604461

Helmut Fryges (Contact Author)

Technopolis Group ( email )

Grosse Seestra├če 26
Frankfurt am Main, 60384
Germany

University of Tasmania - Australian Innovation Research Centre ( email )

1 College Road
Sandy Bay TAS, Tasmania 7005
Australia

HOME PAGE: http://www.utas.edu.au/airc

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

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