Scandinavian Working Papers in Economics

Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

No 293: The Impact of R&D Activities on Exports of German Business Services Enterprises: First evidence from a continuous treatment approach.

Alexander Vogel () and Joachim Wagner ()
Additional contact information
Alexander Vogel: Leuphana University Lueneburg
Joachim Wagner: Leuphana University Lueneburg and CESIS, Stockholm, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden

Abstract: This study uses newly available representative data from German business services firms and a continuous treatment approach based on the generalized 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 Vogel and Wagner (2012) 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.

Keywords: Innovation; export; business services; Germany

JEL-codes: F14

17 pages, December 19, 2012

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