Internationalisation and technological innovation: Empirical evidence on their mutual relationship

Broadly speaking, internationalisation means the entry to new-country markets. It may, therefore, be described as a process of innovation ( Bilkey & Tesar, 1977 ; Andersen, 1993 ; Casson, 2000 ). Faced with increasing international competition, innovation has become a central focus in firms’ long-term strategies. Firms competing in global markets face the challenges and opportunities of change in markets and technologies. One important aspect within innovation management is the optimal integration of external knowledge, since innovation increasingly is derived from a network of companies interacting in a variety of ways ( Veugelers & Cassiman, 1999 ).