4
this regard, it is interesting to note that, in a few countries, such as Italy, medium-sized firms exhibit a
propensity to export that is to the one of large corporations.
Figure 1.1 Export Propensity, by firm size, 2008
Source: OECD TEC database.
The large firms’ dominance in internationalisation is confirmed when looking at the intensive margin
of exports, i.e. the share of firm turnover which is sold in foreign markets. Figure 1.2 illustrates the
export share of firms located in several European countries and shows that the export share of large
firms is about twice that of micro firms, while medium-sized firms still export around 50% more of
their turnover than firms with less than 20 employees (OECD, 2013). However, the above figures may
hide the role SMEs play as intermediary suppliers to larger firms exporting goods for the end-user.
Figure 1.2. Share of exported turnover, by firm size
Source: Barba Navaretti et al. (2011).
The propensity of SMEs to undertake FDI is even lower than their participation in exporting. For this
mode of internationalisation, which entails the highest fixed costs, the share of large firms with
affiliates is far greater than that of micro, small or medium sized firms. In the UK for example, the
share of large firms with affiliates abroad is twice that of medium sized firms, while in Italy and
Germany the difference is roughly fourfold (OECD, 2013).
0
10
20
30
40
50
60
70
80
90
100
United
States
United
Kingdom
Sweden Spain Portugal Poland Italy France Finland Estonia Canada Austria
%
0-9 10-49 50-249 250+ Total
0%
10%
20%
30%
40%
50%
60%
70%
Austria France Germany Hungary Italy Spain UK
10-19 20-49 50-249 more than 249