The global operations of European firms : the second EFIGE policy report

Europe's position in the post-crisis world economy depends on the ability of its firms to carry through effective global export and production strategies. New data from 15,000 firms in Austria, France, Germany, Hungary, Italy, Spain and the United Kingdom show that firm size, productivity, skill intensity and the ability to innovate are associated with better export performance and internationalisation, either through foreign direct investment or outsourcing. Export and foreign production are complementary, particularly for entry into fast-growing emerging markets. But foreign production involves high entry costs and is extremely demanding in managerial, organisational and technological terms,. Firms can improve their competitive skills in the European single market, but competing in the next few years will require more than just exporting to neighbouring EU countries