international business review International Business Review 16 (2007) 275–293 Analysing the link between export intensity, innovation and firm size in a science-based industry Jose´ Pla-Barber à , Joaquı´n Alegre Department of Management ‘Juan Jose´Renau Piqueras’, University of Valencia, Av. Tarongers, s/n. 46022 Valencia, Spain Received 4 December 2006; received in revised form 5 February 2007, 21 February 2007; accepted 26 February 2007 Abstract The aim of this paper is to contribute to a better understanding of the relationship between export intensity, innovation and size in a particular technological setting: a science-based industry. Using a sample of 121 firms in the French biotechnology industry, we have found that firm size is not a determinant for innovation or for export intensity. However, the results show a positive and significant link between innovation and export intensity. Our findings open a new agenda for policy- makers when interpreting how they should promote innovation and exports in science-based firms. r 2007 Elsevier Ltd. All rights reserved. Keywords: Export intensity; Innovation; Size; Science-based industry; SEM 1. Introduction In the global environment, firms can no longer persist in believing that international competition will not affect them because they are small or focused solely on their local market. The increasing engagement of firms in export activities has therefore been one of the more visible answers to the constantly changing dynamics of this new environment. Nowadays, exporting plays a vital role in company strategies and its importance is expected to grow further as markets become increasingly globalised. ARTICLE IN PRESS www.elsevier.com/locate/ibusrev 0969-5931/$ - see front matter r 2007 Elsevier Ltd. All rights reserved. doi:10.1016/j.ibusrev.2007.02.005 à Corresponding author. Tel.: +34 963828917; fax: +34 963828333. E-mail addresses: jose.pla@uv.es (J. Pla-Barber), joaquin.alegre@uv.es (J. Alegre).