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Trade and Technology from a Schumpeterian Perspective

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  • Bart Verspagen
  • Katharine Wakelin

Abstract

This paper attempts to implement empirically a Schumpeterian model of international trade. After briefly discussing the literature on trade and technology, we formulate a model in which 'real' factors such as R&D expenditures, investment and wage costs have an impact on bilateral trade flows between advanced economies. We also take into account the effect of exchange rate differences. The model is empirically estimated on sectoral data for nine OECD countries. We find that what determines competitiveness differs by sector. In many sectors, either R&D expenditures or wage costs are important. The results for investment indicate a weaker role. Consistent with the Marshall-Lerner logic, we find that the sign of exchange rate changes varies by sector. We conclude the paper by a discussion of the relevance of the results for 'technology-based' theories of international trade.

Suggested Citation

  • Bart Verspagen & Katharine Wakelin, 1997. "Trade and Technology from a Schumpeterian Perspective," International Review of Applied Economics, Taylor & Francis Journals, vol. 11(2), pages 181-194.
    • Handle: RePEc:taf:irapec:v:11:y:1997:i:2:p:181-194
    DOI: 10.1080/02692179700000012
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    1. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, November.
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    Cited by:

    1. Gary Madden & Scott Savage & Su Yin Thong, 1999. "Technology, investment and trade: empirical evidence for five Asia-Pacific countries," Applied Economics Letters, Taylor & Francis Journals, vol. 6(6), pages 361-363.
    2. Keld Laursen & Valentina Meliciani, 2000. "The importance of technology-based intersectoral linkages for market share dynamics," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 136(4), pages 702-723, December.
    3. Antonio Carlos Campos & Luís Lopes & Carlos Carreira, 2024. "Spatial Autocorrelation of Exports and R&D Expenditures in Portugal," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8632-8653, June.
    4. Felix Groba & Jing Cao, 2015. "Chinese Renewable Energy Technology Exports: The Role of Policy, Innovation and Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(2), pages 243-283, February.
    5. Rinaldo Evangelista & Matteo Lucchese & Valentina Meliciani, 2015. "Business services and the export performances of manufacturing industries," Journal of Evolutionary Economics, Springer, vol. 25(5), pages 959-981, November.
    6. Tommaso Rondinella, 2006. "Globalization of Employment and Inequality," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(4), pages 531-534.
    7. Laursen, Keld & Meliciani, Valentina, 2010. "The role of ICT knowledge flows for international market share dynamics," Research Policy, Elsevier, vol. 39(5), pages 687-697, June.
    8. Guerrieri, Paolo & Meliciani, Valentina, 2005. "Technology and international competitiveness: The interdependence between manufacturing and producer services," Structural Change and Economic Dynamics, Elsevier, vol. 16(4), pages 489-502, December.
    9. Abdul Rauf & Ying Ma & Abdul Jalil, 2019. "Revisiting the Innovation-export Nexus using Industry-level Data: Evidence from China's Large- and Medium-sized Industrial Enterprises," International Journal of Economics and Financial Issues, Econjournals, vol. 9(3), pages 73-80.
    10. Lopez, Carmen & Yacine Haddoud, Mohamed & Kasturiratne, Dulekha, 2022. "Revisiting the innovation–export entry link through a configuration approach," Journal of Business Research, Elsevier, vol. 149(C), pages 927-937.
    11. Laursen, Keld, 1999. "The impact of technological opportunity on the dynamics of trade performance," Structural Change and Economic Dynamics, Elsevier, vol. 10(3-4), pages 341-357, December.
    12. Rinaldo Evangelista & Matteo Lucchese & Valentina Meliciani, 2013. "The contribution of Business services to the export performances of manufacturing industries. An empirical study on 5 European countries," Working Papers 14, Birkbeck Centre for Innovation Management Research, revised Nov 2013.
    13. Blind, Knut, 2001. "The impacts of innovations and standards on trade of measurement and testing products: empirical results of Switzerland's bilateral trade flows with Germany, France and the UK," Information Economics and Policy, Elsevier, vol. 13(4), pages 439-460, December.
    14. Busayo Ajayi, 2016. "The Impact of Entrepreneurial Orientation and Networking Capabilities on the Export Performance of Nigerian Agricultural SMEs," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 2(1), pages 1-23, January.
    15. Wakelin, Katharine, 1998. "Innovation and export behaviour at the firm level," Research Policy, Elsevier, vol. 26(7-8), pages 829-841, April.
    16. Eddy LEE & Marco VIVARELLI, 2006. "The social impact of globalization in the developing countries," International Labour Review, International Labour Organization, vol. 145(3), pages 167-184, September.
    17. Valentina Meliciani, 2010. "Exports of Knowledge-intensive Services and Manufactures: The Role of ICTs and Intersectoral Linkages," Chapters, in: Robert M. Solow & Jean-Philippe Touffut (ed.), The Shape of the Division of Labour, chapter 4, Edward Elgar Publishing.
    18. Shaianne T. Osterreich, 2019. "Gender and Comparative Advantage: Feminist–Heterodox Theorizing about Globalization," Economies, MDPI, vol. 7(2), pages 1-12, May.

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