Canadian high-growth SMEs and their propensity to invest in R&D and export / Lyming Huang, Innovation, Science and Economic Development Canada, Small Business Branch, Research and Analysis. : Iu188-132/2019E-PDF

"Growth, research and development (R&D) and exporting are known to be strongly linked. The literature shows that investments in R&D and exporting lead to increased growth but there is less evidence on other directions of these links, particularly with respect to high-growth firms. This research uses a unique set of survey data on Canadian small and medium-sized enterprises (SMEs), linked with administrative tax data, to explore 1) whether the R&D propensity of SMEs increases with exporting and high-growth, and 2) whether the export propensity of SMEs increases with R&D and high-growth. Results indicate that R&D propensity is significantly predicted by exporting but is not significantly predicted by high growth. Likewise, export propensity is significantly predicted by R&D, while there is mixed evidence on whether export propensity is significantly predicted by high growth"--Abstract, page 2.

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