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Technology and Trade - an analysis of technology specialization and export flows

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Abstract

This paper examines how technology specialization, measured by citations-weighted patents, affects trade flows. The paper analyzes (i) the relationship between technology specialization and export specialization across regions and (ii) how the technology specialization of origin and destination affect the size and structure of link-specific export flows. We find that the export specialization of a region typically corresponds to the region’s technology specialization, which supports the view that comparative advantages can be created by investments in technology and knowledge. Export flows from regions to destination countries with similar technology specialization as the origin regions consist of commodities of higher quality in the specific technology, as indicated by higher prices. Highly specialized regions export more and charge higher prices. The results of the paper suggest that an understanding of trade ultimately requires an understanding of the spatial pattern of investments in (and creation of) technology and knowledge, as such investments shape export specialization patterns and the corresponding composition of export flows between locations across space.

Suggested Citation

  • Martin, Andersson & Ejermo, Olof, 2006. "Technology and Trade - an analysis of technology specialization and export flows," Papers in Innovation Studies 2006/5, Lund University, CIRCLE - Centre for Innovation Research.
    • Handle: RePEc:hhs:lucirc:2006_005
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    File URL: http://wp.circle.lu.se/upload/CIRCLE/workingpapers/200605_Andersson_Ejermo.pdf
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    Cited by:

    1. Raphaël Chiappini, 2010. "Dynamique des spécialisations et performances commerciales des pays d’Europe centrale et orientale(PECO)," Larefi Working Papers 201005, Larefi, Université Bordeaux 4.
    2. Raphaël Chiappini, 2010. "Dynamique des spécialisations et performances commerciales des pays d'Europe centrale et orientale (PECO)," Working Papers hal-00637591, HAL.
    3. Godinho, Manuel Mira & Ferreira, Vítor, 2012. "Analyzing the evidence of an IPR take-off in China and India," Research Policy, Elsevier, vol. 41(3), pages 499-511.
    4. Mario Cimoli & Jose Antonio Ocampo & Gabriel Porcile & Nunzia Saporito, 2020. "Choosing sides in the trilemma: international financial cycles and structural change in developing economies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 29(7), pages 740-761, October.
    5. Grigorovici, Corina, 2009. "Analysing The Degree Of Specialization In Romania’S Services Trade," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 6(1), pages 94-114, March.
    6. Polt, Wolfgang & Berger, Martin & Boekholt, Patries & Cremers, Katrin & Egeln, Jürgen & Gassler, Helmut & Hofer, Reinhold & Rammer, Christian & Deuten, Jasper & Good, Barbara & Warta, Katharina, 2010. "Das deutsche Forschungs- und Innovationssystem: Ein internationaler Sytemvergleich zur Rolle von Wissenschaft, Interaktionen und Governance für die technologische Leistungsfähigkeit," Studien zum deutschen Innovationssystem 11-2010, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.

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    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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