KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Technology and Trade - an analysis of technology specialization and export flows
() and Olof Ejermo
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 regionís 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.
Keywords: exports; technology; knowledge; specialization; quality; patents; (follow links to similar papers)
JEL-Codes: F14; O33; O52; R12; (follow links to similar papers)
26 pages, May 11, 2006
Revised version accepted for publication in "Economics of Innovation and New Technology"
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