Scandinavian Working Papers in Economics
Working Paper Series,
Trade Union Institute for Economic Research
No 138: Technology, Resource Endowments and International Competitiveness
Patrik Gustavsson, Pär Hansson and Lars Lundberg
Additional contact information
Patrik Gustavsson: Stockholm School of Economics and FIEF, Postal: FIEF, Wallingatan 38, S-111 24 Stockholm, Sweden
Pär Hansson: Trade Union Institute for Economic Research, Postal: FIEF, Wallingatan 38, S-111 24 Stockholm, Sweden
Lars Lundberg: Trade Union Institute for Economic Research, Postal: FIEF, Wallingatan 38, S-111 24 Stockholm, Sweden
Abstract: The paper evaluates the impact of technology together with resource endowments and economies of scale on international competitiveness in OECD countries. Knowledge capital stocks are obtained by cumulating R&D expenditure. Results show that competitiveness is determined not only by the R&D activity of the representative firm, but also by the size of domestic industry as well as economy wide stocks of knowledge, indicating the presence of local externalities. Further results point to the importance of economies of scale in R&D internal to the firm and of investment for introduction of embodied technical progress. Finally, the R&D impact differs between high- and low-tech industries as well as among countries.
Keywords: international competitiveness; technology gap; knowledge stock; R&D; disembodied and embodied technical change
30 pages, September 15, 1996
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