Internationalization and creation of new products and processes in the Mexican manufacturing industry

  • Liliana Meza González Centro de Investigación y Docencia Económicas Secretaría del Trabajo y Previsión Social
Keywords: technical innovation, economic integration, manufacturing sector, Mexico
JEL Classification: F15, F14, F23, L60, O31

Abstract

This paper tries to understand the relationship between internationalization and the generation of new products and processes in a developing country, using data from 2285 Mexican manufacturing firms and for the 2008-2009 period. Through an econometric analysis, this paper contributes to the literature and concludes that, after controlling for the size of the firm, its innovative effort and the concentration of the market power in the industry, being an exporter promotes the generation of new processes and of innovations for the world; FDI also promotes innovation for the world; being an importer does not affect the innovative outcomes of the firm, while outsourcing inhibits the generation of both new products and processes, and the innovation for the world.

References

Aghion, P. y P. Howitt. 1998. Endogenous Growth Theory, MIT Press.

Almeida R.K. y A.M. Fernandes. 2008. Openness and technological innovations in developing countries: Evidence from firm-level surveys, Journal of Developing Studies, 44: 701-721.

Altomonte, C., T. Aquilante, G. Békes and G.I.P. Ottaviano. 2013. Internationalization and innovation of firms: Evidence and policy, Economic Policy, 26(76): 663-700.

Alvarez R. y R. Robertson. 2004. Exposure to foreign markets and plant-level innovation: Evidence from Chile and Mexico, The Journal of International Trade and Economic Development: An International and Comparative Review, 13(1): 57-87.

Anwar S. y S. Sun 2103. Foreign entry and firm R&D: evidence from Chinese manufacturing industries, R& D Management, 43(4): 303-317.

Becheikh, N., R. Landry y N. Amara 2006. Lessons from innovation empirical studies in the manufacturing sector: A systematic review of the literature from 1993-2003, Technovation, 26: 644-664.

Bernard, A. 1999. Exceptional exporter performance: Cause, effect or both?, Journal of International Economics, 47: 1-25.

Bertschek, I. 1995. Product and process innovation as a response of increasing imports and foreign direct investment, The Journal of Industrial Economics, 43(4): 341-357.

Boermans, M.A. y H. Roelfsema. 2015. The effects of internationalization on innovation: Firm level evidence for transition economies, Open Economy Review, 26: 333-350.

Cantwell, J. 1989. Technological Innovation and Multinational Corporations, B. Blackwell.

Caselli, F. y W. Coleman. 2001. Cross-country technology diffusion: The case of computers, American Economic Review, 91(2): 328-335.

Comin, D. y B. Hobijn. 2004. Cross-country technology adoption: Making the theories face the facts, Journal of Monetary Economics, 51(1): 39-83.

Contractor, F.J., S.K. Kundu y C.C. Hsu. 2003. A three-stage theory of international expansion: The link between multinationality and performance in the service sector, Journal of International Business Studies, 34(1): 5-18.

Criscuolo, C., J.E. Haskel y M. J.Slaughter. 2010. Global engagement and the innovation activities of firms, International Journal of Industrial Organization, 28: 191-202.

Damijan, J.P., J. DeSousa y O. Lamotte. 2009. Does international openness affect the productivity of local firms?, Economic Transition, 17(3): 559-586.

Damijan, J.P., C. Kostevc y S. Polanec. 2010. From innovation to exporting or viceversa? World Economy, 33(3): 374-398.

Dasgupta, P. y J.E. Stiglitz. 1980. Industrial structure and the nature of innovative activity, Economic Journal, 90: 266-293.

Griliches, Z. 1998. R&D and productivity: Econometric results and measurement issues, en P. Stoneman (comp.) Handbook of the Economics if Innovation and Technological Change, Oxford, Blackwell, pp. 52-89.

Grossman G.L. y E. Helpman, E. 1991. Innovation and Growth in the World Economy, Cambridge, MIT Press.

Haddad, M. y A. Harrison. 1993. Are there positive spillovers from foreign direct investment? Evidence from panel data for Morocco, Journal of Development Economics, XLII: 51-74.

Haskel, J.E., S. Pereira y M.J. Slaughter. 2007. Does inward foreign direct investment boost the productivity of domestic firms?, The Review of Economics and Statistics, 89(3): 482-496.

Hitt, M.A., R.E. Hoskisson y H. Kim. 1997. International diversification: Effects on innovation and firm performance in product-diversified firms, Academic Management Journal, 40(4): 767-98.

INEGI. 2013. Encuesta sobre investigación y desarrollo tecnológico (ESIDET) 2010. Resultados, México.

Insik, J. 2003. A cross-national study of the relationship between international diversification and new product performance, International Marketing Review, 20(4): 353-376.

Javorcik, B. 2006. Technological leadership and the choice of entry mode by foreign investors, en B. Hoekman y B. Javorcik (comps.) Global Integration and Technology Transfer, Palgrave Macmillan/The World Bank, pp. 179-206.

Mansfield, E. y A. Romeo. 1980. Technology transfers to overseas subsidiaries by U.S. based firms, Quarterly Journal of Economics, 95(4): 737-750.

Meza, L. y A.B. Mora. 2005. Trade and private R&D in Mexico, Econom´ıa Mexicana, XIV(2): 157-183.

OCDE. 1997. Proposed guidelines for collecting and interpreting technological innovation data. Oslo manual, Par´ıs, OCDE/Eurostat.

Qian G. y J. Li, J. 2002. Multinationality, global market diversification and profitability among the largest U.S. firms, Journal of Business Research, 55(4): 325-335.

Ramachandran, V. 1993. Technology transfer, firm ownership, and investment in human capital, Review of Economics and Statistics, 75(4): 664-670.

Romer, P.M. 1990. Endogenous technological change, Journal of Political Economy, 98(5/2): S71-S102.

Scherer, F. 1965. Firm size, market structure, opportunity and the output of patented inventions, American Economic Review, 55: 1097-1125.

Schumpeter, J.A. 1934. The Theory of Economic Development, Cambridge, Harvard University Press.

Seker, M. 2012. Importing, exporting, and innovation in developing countries, Review of International Economics, 20(2): 299-314.

Thomas, D.E y L. Eden. 2004. What is the shape of the multinationality performance relationship?, Multinational Business Review, 12(1): 89-110.

Zimmermann, K. 1987. Trade and dynamic efficiency, Kyklos, 40: 73-87.

Published
01-07-2016
How to Cite
Meza GonzálezL. (2016). Internationalization and creation of new products and processes in the Mexican manufacturing industry. Estudios Económicos, 31(2), 235-263. https://doi.org/10.24201/ee.v31i2.17
  • Abstract viewed - 938 times
  • PDF (Spanish) downloaded: 395 times
  • XML (Spanish) downloaded: 0 times