TY - JOUR AU - Criscuolo,Chiara AU - Haskel,Jonathan E. AU - Slaughter,Matthew J. TI - Global Engagement and the Innovation Activities of Firms JF - National Bureau of Economic Research Working Paper Series VL - No. 11479 PY - 2005 Y2 - July 2005 UR - http://www.nber.org/papers/w11479 L1 - http://www.nber.org/papers/w11479.pdf N1 - Author contact info: Chiara Criscuolo Centre for Economic Performance London School of Economics Houghton Street London WC2A 2AE United Kingdom Tel: 004420 7955 6973 E-Mail: c.criscuolo@lse.ac.uk Jonathan Haskel Imperial College Business School Tanaka Building South Kensington Campus London SW7 2AZ ENGLAND Tel: +44 (0)20 7594 8563 Fax: +44 (0)20 7594 5915 E-Mail: j.haskel@imperial.ac.uk Matthew J. Slaughter Tuck School of Business Dartmouth College 100 Tuck Hall Hanover, NH 03755 Tel: 603/646-2939 Fax: 603/646-0995 E-Mail: matthew.j.slaughter@dartmouth.edu M2 - featured in NBER digest on 2005-07-11 AB - Firms that export or, even more so, are part of a multinational enterprise tend to exhibit higher productivity than their purely domestic counterparts. To better understand this correlation, we incorporate the perspective of industrial organization that one of the main drivers of differences in productivity is differences in knowledge. We examine a new data set of several thousand U.K. enterprises covering all industries from 1994 through 2000. For each enterprise we have multiple detailed measures of knowledge outputs, knowledge investments, and sources of existing knowledge. We find that globally engaged firms do innovate more. But this is not just because globally engaged firms use more researchers. It is also because they learn more from more sources such as suppliers and customers, universities, and their intra-firm worldwide pool of information. We also find that the relative importance of knowledge sources varies systematically with the type of innovation. ER -