How Similar is Innovation in German, Italian and Spanish Medium-Technology Sectors? Implications for the Sectoral Systems of Innovation and Distance-to-the-Frontier Perspectives

This study analyzes innovation activities in medium-technology sectors in Germany, Italy and Spain and checks whether cross-country similarities or differences prevail. The results have important implications for the Sectoral Systems of Innovation and the Distance-to-the-Frontier frameworks. While the Sectoral Systems of Innovation predicts the existence of technology-related similarities in innovative patterns in the same sectors across countries, the Distance-to-the Frontier suggests the existence of relevant differences related with the level of technological development of each national sector. Using Community Innovation Survey data and adapting an econometric strategy first devised by Griffith, Huergo, Mairesse and Peters [Innovation and Productivity Across four European Countries, Oxford Review of Economic Policy, 22(4), 483–498, 2006], I test whether similarities or differences prevail across country in different features of innovation activity. The results show that relevant differences between the three countries exist in the intensity of R&D activities and in the economic impact of different types of innovations, providing support to the Distance-to-the-Frontier hypothesis. On the contrary, cross-country similarities emerge among the sources of knowledge used to develop innovations, in line with the Sectoral Systems of Innovation framework. The results highlight the importance to take into account both frameworks for a useful analysis of innovation within sectors and across countries.