Exporting and innovation performance: Analysis of the annual Small Business Survey in the UK

Abstract

This paper analyses the determinants of the export propensity of UK small and medium-sized enterprises (SMEs) based on the 2004 Annual Small Business Survey. Particular emphasis is placed upon the relationship between innovation activities (distinguishing product from process innovation) and export performance. In general the data suggest that some 17% of firms within this group sell outside the UK. Businesses that export are also characterized by high levels of innovation activity (43 per cent of exporters innovate in products, 27 per cent innovate in process and 21 per cent innovate in both). When considering product and process innovation independently we find that both impact positively on the decision to export. However, once we consider the interdependence between both innovation activities, we find no robust evidence that process innovation increases the probability to export beyond product innovation.

The impact of technological and non-technological innovations on export intensity in SMEs

“…We offer a number of extensions on the existing literature. First, most studies on the effectiveness of innovation in promoting exploring focus on large manufacturing firms (Añón Higón and Driffield, 2010), while our study provides evidence for SMEs. In addition, not only that we explore the innovation-export link in SMEs, but we also take into account that SMEs are not a homogenous firm size category because of different resources, capabilities and obstacles they encounter (Hervas-Oliver et al, 2016;Ortega-Argilés et al, 2009).…”

Linking Entrepreneurial Skills and Opportunity Recognition with Improved Food Distribution in the Context of the CPEC: A Case of Pakistan

“…From the study results, it is also evident that the adoption to market orientation, innovation orientation, and entrepreneurial orientation are the most effective measures implemented by the farmers that transform their role to agriculture entrepreneurs. Within this context, market, innovation and entrepreneurship orientation provide farmers with sufficient capabilities to overcome borne menaces in agriculture sector, as many studies [36,117,118] explored that nascent agriculture entrepreneurs are aggressive to goals, flexible in decision making, adapting to technological developments, proactive to market signals and yield superior economic performance [119]. As noted by Ismail, Domil [37], there is vast room for nascent entrepreneurs to grow faster and gain sizable expansion and this is very true in the case of the present study settings.…”

SMEs' Innovation and Export Capabilities: Identification and Characterization of a Common Space Using Data Spatialization

“…Concerning SMEs in particular, the innovation / export link is also validated by diverse articles (Cassiman et al, 2010;Cassiman and Golovko, 2011;Higón and Driffield, 2011) within the framework of product innovation. Le Roy and Torres (2001) propose an additional element, by proving that the positive impact of product innovation on the international activities of SMEs does not depend on the geographical area of the target market.…”