Drawing on recent developments in applied international trade and innovation and learning
in developing countries, this paper examines the links between firm-level export
performance, foreign ownership, and the acquisition of technological capabilities in a sample
of 205 clothing enterprises in Sri Lanka. Econometric analysis indicates that foreign
ownership, firm size, human capital, technological capabilities, and geographical location are
all positively associated with export shares. Furthermore, higher levels of technological
capability are associated with larger firm size, university-level manpower, and R&D. Microlevel
investigations are a complementary input to developing policies for promoting private
sector competitiveness in outward-oriented developing countries.