Corporate R&D Investment and Exports: Focusing on the Measurement of Export Performance

Purpose – This study aims to empirically investigate the impact of corporate R&D investment on export performance, while also critically examining the limitations of using the export-to-sales ratio as a conventional measure of export performance. Design/Methodology – The analysis is based on panel data covering 963 manufacturing firms listed on the KOSPI and KOSDAQ markets from 2010 to 2023, resulting in 6,912 firm-year observations. Panel regression and multiple regression analyses were conducted. The study introduces alternative measures of export performance to address potential distortions in the export-to-sales ratio, including export growth rate, export amount, and export-to-total assets ratio. Findings – The empirical analysis revealed that the export-to-sales ratio may produce misleading interpretations of export performance, particularly when changes in total sales and exports move in opposite directions. After excluding distorted cases, R&D intensity was found to have a significantly positive impact on export performance. Furthermore, R&D investment consistently demonstrated a positive and significant effect across all models using alternative performance measures. Originality/Value – This study contributes to the literature by highlighting the limitations of commonly used export performance indicators and offering robust alternative measures. It provides practical implications for researchers and policymakers by emphasizing the importance of selecting appropriate performance metrics when evaluating the effects of R&D on firm-level export outcomes.