Innovation and Internationalization of Young Entrepreneurial Firms

This article investigates the relationship

between innovation and internationalization

in young entrepreneurial firms. Based

on data from the Global Entrepreneurship

Monitor and the World Bank for 64 countries

during the 2001-2008 period, this

study demonstrates that young entrepreneurial

firms involved in product and/or

process innovation are more likely to be

internationalized. Moreover, the results of

our study reveal that the impact of innovation

is greater for product innovation

than for process innovation and for highincome

countries than for low- or middleincome

countries.