Exporters and International Knowledge Transfer: Evidence From UK Firms

Within the recent literature studying participation in international markets using micro data, a small number have suggested that firms benefit from their exposure to international markets. One channel considered for this role has been investments in R&D. A common finding in this literature is that firms involved in international trade are also more likely to also undertake R&D. In this paper we expand the question to consider whether exporters also differ from non-exporters in the knowledge inputs used for R&D. Using data for UK firms we find that while in general this is so, non-exporters also involve themselves in international knowledge transfer.