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Author:Beers, C. van
Panne, G. van der
Title:Geography, knowledge spillovers and small firms' exports: an empirical examination for the Netherlands
Journal:Small business economics
2011 : OCT, VOL. 37:3 p. 325-339
Index terms:small business
exports
competitive advantage
technological innovation
empirical research
Netherlands
Language:eng
Abstract:This study investigates the external and internal scale economies' effect on the decision to start exporting and the export levels of innovating firms. Relying on new trade theory, increasing returns to scale-both internal and external scale economies-are held as a substantial source of comparative and competitive advantage. The empirical analysis of (small) innovating firms in the Netherlands gives two main findings. First, firms located in technical Marshallian clusters seem less inclined to start exporting. Availability of technical knowledge alone does not reduce entry costs caused by the decision to export and/or marketing and sales costs for a higher export performance. Second, companies facing difficulties in appropriating innovation rents due to labour poaching are also found to be less inclined to become exporters. The explanation for this is the importance of outgoing knowledge spillovers particularly critical for small, product innovating firms, reducing their likelihood to export. However, if companies export, the knowledge leaking argument is not valid for the export performance of the firm.
SCIMA record nr: 275275
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