Internationalization, research expenditures and ICT exports in the EU

Abstract The ICT sector belongs among the most dynamic and innovative branches of economy. This study aims to focus on the ICT sector in the internationalization process in the European Union, in line with our earlier research on this topic. Our analysis employs GERD and BERD as key indicators of high value-added exports. To capture the output indicator of internationalization, we considered the ICT share of total exports. Two hypotheses were tested: (H1) the higher share of GERD positively correlates with ICT export volumes of goods and services within the EU and (H2) the higher share of BERD positively correlates with ICT export volumes of goods and services within the EU. The overall aim of the paper is to determine whether rising R&D expenditures contribute to greater internationalization via ICT exports within the EU.