In today’s competitive international economy where companies in emerging markets can produce goods at considerably lower prices, Britain’s strengths in innovation and productivity are crucial in shaping a progressive export environment in which it can become a global leader.
Research shows that companies which export are more profitable, productive and innovative1 and have a higher probability of survival2 than those that do not. It is for these reasons that the Government is committed to an ambitious programme to increase UK exports significantly to £1 trillion by 2020.
Despite providing additional capital to support new exports and the provision of new contacts and expertise in overseas markets, there has been little analysis of the impact that private equity and venture capital firms have on the export prospects of the businesses that they invest in. As successful international trade and investment relies on entrepreneurial, innovative and dynamic companies, the contribution of the asset class within this environment is a crucial component in driving Britain’s economic growth.
View exports case studies of private equity-backed companies
1Fryges, H. and Wagner, J. (2008) Exports and Profitability: First Evidence for German Manufacturing Firms. World Economy, 2010, 22 (3), 399-423. Hesse, G. (2013) The Impact of a Firm’s Share of Exports on Revenue, Wages and Measure of Workers Hired – Theory and Evidence. Ulm University. Harris, R. and Li, Q. C. (2007) Firm Level Empirical Study of the Contribution of Exporting to UK Productivity Growth. UKTI Analytical Papers. Harris, R. and Moffat, J. (2014) Investigation into Links between Internationalisation and Firm Performance. UKTI Analytical Papers. Department for Business, Innovation and Skills (2010) Internationalisation of Innovative and High Growth SMEs. BIS Economics Paper No. 5, March 2010. Harris, R. & Li, Q. C. (2006) Establishment Level Empirical Study of Links Between Exporting, Innovation, and Productivity. CIS4; May 2006. Interim Report to UKTI.
2Harris, R. and Li, Q. C. (2007) Firm Level Empirical Study of the Contribution of Exporting to UK Productivity Growth. UKTI Analytical Papers.