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The Development of Productive Structures of EU Member Countries and Their International Competitiveness

Author

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  • Andreas Reinstaller
  • Werner Hölzl
  • Johannes Kutsam
  • Christian Schmid

Abstract

This study examines the development of the productive structures of the EU using international trade data and methods from complexity theory referred to as the "product space" approach. The results show that the set of products for which a country has already a comparative advantage in international trade is a strong predictor for the type of products in which it will develop a comparative advantage and obtain significant world market shares. This implies that the development of the productive structures of a country is a highly cumulative process and any upgrading is necessarily deeply rooted in current capabilities and industrial specialisation. Complementary factors and competencies have to be built up. This makes it more difficult for countries to change their productive structures. In the light of the results of this study the smart specialisation strategy which the European Commission pursues in its cohesion policy for the years 2014-2020 seems to be well placed to foster the competitiveness of the European Union in general and the European regions in particular. Some caveats however apply.

Suggested Citation

  • Andreas Reinstaller & Werner Hölzl & Johannes Kutsam & Christian Schmid, 2013. "The Development of Productive Structures of EU Member Countries and Their International Competitiveness," WIFO Studies, WIFO, number 46823.
    • Handle: RePEc:wfo:wstudy:46823
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    References listed on IDEAS

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    Cited by:

    1. Jürgen Janger & Tim Slickers, 2023. "Wissensproduktion und Wissensverwertung in Österreich im internationalen Vergleich," WIFO Monatsberichte (monthly reports), WIFO, vol. 96(10), pages 699-714, October.
    2. Michael Peneder & Julia Bock-Schappelwein & Matthias Firgo & Oliver Fritz & Gerhard Streicher, 2016. "Österreich im Wandel der Digitalisierung," WIFO Studies, WIFO, number 58979.
    3. Karl Aiginger, 2014. "Industrial Policy for a Sustainable Growth Path. WWWforEurope Policy Paper No. 13," WIFO Studies, WIFO, number 47261.
    4. Eckhard Hein & Daniel Detzer, 2014. "Coping with imbalances in the Euro area: Policy alternatives addressing divergences and disparities between member countries," Working papers wpaper63, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    5. Peneder, Michael & Rammer, Christian (ed.), 2018. "Measuring Competitiveness," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 181906.
    6. Michael Peneder & Nicole Schmidt & Anna Strauss & Stefan Weingärtner, 2018. "Österreichs Wettbewerbsfähigkeit im internationalen Vergleich," WIFO Working Papers 565, WIFO.
    7. Valeria Cirillo & Dario Guarascio & Mario Pianta, 2014. "Will Europe?s industry survive the crisis? Competitiveness, employment and the need for an industrial policy," Working Papers 1408, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2014.
    8. Jürgen Janger & Agnes Kügler, 2018. "Innovationseffizienz. Österreich im internationalen Vergleich," WIFO Studies, WIFO, number 61111.
    9. Michael Peneder & Christian Rammer, 2018. "Measuring Competitiveness," WIFO Studies, WIFO, number 60838.
    10. Werner Hölzl, 2021. "Structural Change towards Services," WIFO Working Papers 631, WIFO.
    11. Neil Foster-McGregor & Mario Holzner & Michael Landesmann & Johannes Pöschl & Robert Stehrer & Roman Stöllinger, 2013. "A ‘Manufacturing Imperative’ in the EU – Europe's Position in Global Manufacturing and the Role of Industrial Policy," wiiw Research Reports 391, The Vienna Institute for International Economic Studies, wiiw.
    12. repec:wsr:pbrief:y:2014:i:023 is not listed on IDEAS
    13. Mario Pianta, 2014. "An industrial policy for Europe," Working Papers 1401, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2014.
    14. Gunther Tichy, 2015. "Wirtschaftsstandort Österreich – von der "Überholspur" aufs "Abstellgleis"," WIFO Monatsberichte (monthly reports), WIFO, vol. 88(8), pages 635-648, August.
    15. Karl Aiginger & Matthias Firgo & Peter Huber, 2013. "Erfolgsstrategien für die europäische Peripherie. Erkenntnisse für Südeuropa aus der Regionalökonomie," WIFO Monatsberichte (monthly reports), WIFO, vol. 86(6), pages 509-521, June.
    16. Constantine, Collin, 2014. "Rethinking the Twin Deficits," MPRA Paper 58798, University Library of Munich, Germany.
    17. Karl Aiginger, 2014. "Industrial Policy for a Sustainable Growth Path," WIFO Working Papers 469, WIFO.

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