Abstract
This study focuses on the relation between innovation and the international involvement of Small and Medium-sized Enterprises (SMEs), taking into account export as well as import activities of firms. The analysis is based on a sample of more than 1,800 Dutch SMEs using regression analysis. First, a positive impact is found for innovative investments on international involvement. The results of the analysis also suggest that there is a significant positive effect of several innovative realisations or practices on international involvement. For example, the results indicate that product innovations, strategic attention for innovation and inter-firm cooperation are positively related to export behaviour and export intensity. The results also indicate that product innovations, process innovations and supplier-driven innovations are positively related to import behaviour. Finally, some evidence is also found that international involvement may stimulate firms to invest in product innovations and in new distribution systems.
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