Scandinavian Working Papers in Economics

Papers in Innovation Studies,
Lund University, CIRCLE - Centre for Innovation Research

No 2017/13: Firm Capabilities, Technological Dynamism and Innovation Internationalisation – a Behavioural Approach

Torben Schubert (), Elisabeth Baier () and Christian Rammer ()
Additional contact information
Torben Schubert: CIRCLE, Lund University, Postal: CIRCLE, Lund University, PO Box 117, SE-22100 Lund, Sweden
Elisabeth Baier: HWTK, Baden-Baden, Postal: Germany
Christian Rammer: ZEW, Mannheim, Postal: Germany

Abstract: We develop a behavioural framework of bounded rational decision-making under uncertainty by which we analyse the effect of technological dynamism in the firm’s environment on its decisions to internationalise innovation. Arguing that the firm’s technological performance lev-el affects its risk-preferences, a key-prediction is that firms with low technological compe-tences will internationalise innovation when faced by technological uncertainty while firms with high competences will withdraw from international innovation. A fully rational absorptive-capacity framework would predict the opposite relationship because it ignores the role of dif-ferential risk-preferences. We test our framework using data from the German Community Innovation Survey (CIS).

Keywords: innovation internationalisation; speed of technological change; bounded rationality; prospect theory; uncertainty; technological capabilities

JEL-codes: F21; F23; L22; O32

52 pages, September 1, 2017

Full text files

201713_schubert_et_al.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Torben Schubert ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:lucirc:2017_013This page generated on 2024-09-13 22:16:05.