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Is there a large-country advantage in high-tech?


  • Jan Fagerberg

    (Centre for Technology, Innovation and Culture, University of Oslo)


High-tech is a commonly used catch-word for industries that use a relatively large share of their resources on R&D and develop many new products and processes. It is a widely held view that high- tech is good for growth, and that countries that succeed in high- tech industry perform well. Schumpeterian theory, as well as the more recent “new growth” theories, are often quoted in support of this view. However, the “new growth” theories also suggest that large countries are more likely than small ones to succeed in high-tech. This paper explores empirically the factors behind success or failure in high-tech industry for a sample of OECD countries from the 1960s to the 1980s. It is concluded that although there exists a group of high-tech industries for which the scale of the country seems to matter a lot, this does not extend to all industries where R&D and innovation are important. However, cost competition tends to be more severe in those industries where small countries can compete on equal terms. Thus, small countries do to some extent face a greater challenge in high-tech than large countries

Suggested Citation

  • Jan Fagerberg, 1995. "Is there a large-country advantage in high-tech?," Working Papers Archives 1995526, Centre for Technology, Innovation and Culture, University of Oslo.
  • Handle: RePEc:tik:wparch:1995526
    Note: Originally published as NUPI working paper no.526, January 1995

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    Cited by:

    1. Gönül MURATOÐLU & Yusuf MURATOÐLU, 2016. "Determinants of Export Competitiveness: Evidence from OECD Manufacturing," Journal of Economics and Political Economy, KSP Journals, vol. 3(1), pages 111-118, March.
    2. Armando Garcia Pires, 2012. "International trade and competitiveness," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 50(3), pages 727-763, August.
    3. Mohd. FAYAZ & Sandeep KAUR, 2019. "An Empirical Analysis Of The Determinants Of India’S High-Technology Exports," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 19(2), pages 29-44.
    4. M. Cimoli, 1998. "National System of Innovation: A Note on Technological Asymmetries and Catching-Up Perspectives," Working Papers ir98030, International Institute for Applied Systems Analysis.
    5. Bent Dalum & Gert Villumsen, 1996. "Are OECD Export Specialisation Patterns 'Sticky'? Relations to the Convergence-Divergence Debate," DRUID Working Papers 96-3, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    6. Jochem, Patrick & Schleich, Joachim, 2011. "Exploring the factors driving automotive exports in OECD countries," Working Papers "Sustainability and Innovation" S4/2011, Fraunhofer Institute for Systems and Innovation Research (ISI).
    7. Pontus Braunerhjelm & Per Thulin, 2008. "Can countries create comparative advantages? R&D expenditures, high-tech exports and country size in 19 OECD countries, 1981-1999," International Economic Journal, Taylor & Francis Journals, vol. 22(1), pages 95-111.
    8. Yvonne Wolfmayr, 2008. "Producer Services and Competitiveness of Manufacturing Exports," WIFO Studies, WIFO, number 34225, Juni.
    9. van Bergeijk, Peter A. G. & van Hagen, Gilbert H. A. & de Mooij, Ruud A. & van Sinderen, Jarig, 1997. "Endogenizing technological progress: The MESEMET Model," Economic Modelling, Elsevier, vol. 14(3), pages 341-367, July.
    10. Jochem, Patrick & Schleich, Joachim, 2012. "Exploring the drivers behind automotive exports in OECD countries: An empirical analysis," Working Papers "Sustainability and Innovation" S3/2012, Fraunhofer Institute for Systems and Innovation Research (ISI).

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