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The impact of the scope of technological search on path-dependence in export specialization: evidence for European countries

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  • Andreas Reinstaller
  • Peter Reschenhofer

Abstract

This paper examines how product relatedness and the breadth of technological search affect the path-dependent development of export specializations across countries documented in prior research. The results of the econometric analysis in this paper show that broader technological search in an industry has a positive impact on the development of comparative advantages in the product lines it exports. The interplay between product relatedness and the scope of technological search has a two-edged character. On the one hand, broader technological search supports adjustments and consolidations of the export baskets on the extensive margin. This contributes to weaken path-dependency. On the other hand, it fosters the competitiveness of products that are related to current export specializations, and thereby promotes path-dependency on the intensive margin of trade. These results differ across countries with different levels of technological capabilities.

Suggested Citation

  • Andreas Reinstaller & Peter Reschenhofer, 2019. "The impact of the scope of technological search on path-dependence in export specialization: evidence for European countries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(6), pages 1611-1635.
    • Handle: RePEc:oup:indcch:v:28:y:2019:i:6:p:1611-1635.
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    File URL: http://hdl.handle.net/10.1093/icc/dtz026
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    Citations

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    Cited by:

    1. Wifo, 2021. "WIFO-Monatsberichte, Heft 11/2021," WIFO Monatsberichte (monthly reports), WIFO, vol. 94(11), November.
    2. Klaus S. Friesenbichler & Andreas Reinstaller, 2023. "Small and internationalized firms competing with Chinese exporters," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(1), pages 167-192, March.
    3. Karl Aiginger & Dani Rodrik, 2020. "Rebirth of Industrial Policy and an Agenda for the Twenty-First Century," Journal of Industry, Competition and Trade, Springer, vol. 20(2), pages 189-207, June.
    4. Friesenbichler, Klaus S. & Kügler, Agnes, 2022. "Servitization across countries and sectors: Evidence from world input-output data," Economic Systems, Elsevier, vol. 46(3).
    5. Michael Klien & Michael Böheim & Matthias Firgo & Andreas Reinstaller & Peter Reschenhofer & Yvonne Wolfmayr, 2021. "Stärkung der Unabhängigkeit des Wirtschaftsstandortes Österreich bei kritischen Produkten," WIFO Studies, WIFO, number 67234, January.
    6. Birgit Meyer & Klaus Friesenbichler & Mario Hirz, 2021. "Dekarbonisierung als ein Treiber des Wandels der österreichischen Kfz-Zulieferindustrie," WIFO Monatsberichte (monthly reports), WIFO, vol. 94(11), pages 829-839, November.
    7. Koch, Philipp & Schwarzbauer, Wolfgang, 2021. "Yet another space: Why the Industry Space adds value to the understanding of structural change and economic development," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 198-213.

    More about this item

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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