Press Releases
Exporting Will Help Alleviate Today’s Economic Woes According to NYU Stern Research
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-- New study finds technology firms benefit from global trade with increase in innovation --
NEW YORK--“As the global recession continues, struggling domestic industries are demanding new import restrictions to safeguard their businesses,” says NYU Stern Professor Robert Salomon. “But promoting protectionism in the US and other countries is particularly dangerous in today’s recession, because research shows that international trade is closely linked to spikes in innovation – something world markets desperately need in these tough economic times.”
Furthering the debate on how exporting may benefit companies, Salomon and co-author Byungchae Jin of the Robert H. Smith School of Business at the University of Maryland investigate the impact of exporting on the innovative productivity of technologically lagging versus technologically leading firms.
After examining a sample of 1,744 Spanish manufacturing firms from 1990-1997, the authors find that:
August 12, 2009: http://www.businesswire.com/news/home/20090812005847/en
NEW YORK--“As the global recession continues, struggling domestic industries are demanding new import restrictions to safeguard their businesses,” says NYU Stern Professor Robert Salomon. “But promoting protectionism in the US and other countries is particularly dangerous in today’s recession, because research shows that international trade is closely linked to spikes in innovation – something world markets desperately need in these tough economic times.”
Furthering the debate on how exporting may benefit companies, Salomon and co-author Byungchae Jin of the Robert H. Smith School of Business at the University of Maryland investigate the impact of exporting on the innovative productivity of technologically lagging versus technologically leading firms.
After examining a sample of 1,744 Spanish manufacturing firms from 1990-1997, the authors find that:
- Exporting is closely linked to increases in innovation for both technologically leading and lagging firms.
- After entering export markets, technologically leading firms apply for significantly more patents than technologically lagging firms.
- Technologically advanced firms benefit more from exporting than do their less advanced competitors.
August 12, 2009: http://www.businesswire.com/news/home/20090812005847/en