The importance of technology-based intersectoral linkages for market share dynamics
AbstractThis paper introduces inter-sectoral technology-based linkages (or technological spillovers) in a empirical model of international market share dynamics. The Pavitt taxonomy is applied as a yardstick for interpreting the empirical results. In accordance with the criteria behind the taxonomy, we find upstream linkages to be more important for the determination of market shares in scale intensive and supplier dominated sectors, while downstream linkages are particularly important for specialised suppliers. We also find investment to be more important for scale intensive types of sectors, formal R&D for science based sectors, and costs for supplier dominated sectors. The results highlight that the relative importance of different sources of competitiveness differs across sectors and thus reconcile the differences in emphasis in relation to the role of technology in determining trade flows, between (a) a tradition that stresses the importance of knowledge developed in a particular sector, and (b) the so-called âhome market hypothesisâ, that points out how inter-sectoral linkages within a particular country determine trade flows from that country.
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Bibliographic InfoArticle provided by Springer in its journal Weltwirtschaftliches Archiv.
Volume (Year): 136 (2000)
Issue (Month): 4 (December)
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Other versions of this item:
- Keld Laursen & Valentina Meliciani, 1999. "The Importance of Technology Based Inter-sectoral Linkages for Market Share Dynamics," DRUID Working Papers 99-10, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
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