This paper examines the relationship between the internationalisation of firms in services and their innovation performance. We use firm-level data over the period 2004-2006 and estimate an augmented structural model to account for the role of foreign direct investment and exporting on the...

"We use firm-level data for U.S. multinational enterprises (MNE) and the model of firm heterogeneity first presented in Helpman, Melitz, and Yeaple (2004) to make four empirical contributions. First, we show that the most productive U.S. firms invest in a larger number of foreign countries and...