Commissioned by: European Commission, Framework Programme
Study by: Austrian Institute of Economic Research – Statistics Netherlands – Istituto Nazionale di Statistica – Lunaria Associazione di Promozione Sociale e Impresa Sociale – United Nations University – Maastricht Economic and Social Research Institute on Innovation and Technology – Fondation Nationale des Sciences Politiques – Scuola superiore Sant'Anna – Statistics Austria – University College London – University of Bielefeld – University of Ljubljana – University of Tartu – Centre for European Economic Research – Katholieke Universiteit Leuven (Belgium)
This paper examines how product relatedness and the breadth of technological search affect the path-dependent development
of export specialisations 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 specialisations, and thereby promotes path-dependency on the intensive margin of trade.
These results differ across countries with different levels of technological capabilities.
JEL-Codes:I25, O11, O14
Keywords:trade diversification, path dependency, knowledge creation, knowledge diffusion, product space
Research group:Industrial, Innovation and International Economics
Commissioned by: European Commission-Framework Programme
Study by: Austrian Institute of Economic Research – Statistics Netherlands – Istituto Nazionale di Statistica – Lunaria Associazione di Promozione Sociale e Impresa Sociale – United Nations University – Maastricht Economic and Social Research Institute on Innovation and Technology – Fondation Nationale des Sciences Politiques – Scuola superiore Sant'Anna – Statistics Austria – University College London – University of Ljubljana – University of Tartu – Catholic University of Leuven – Centre for European Economic Research – University of Bielefeld
Closed: 2022
GROWINPRO aims to provide a detailed analysis of the causes of the anaemic growth performance observed in Europe during the
last decades and, in particular, after the Great Recession. On the grounds of such analysis, GROWINPRO will deliver a set
of policy solutions aimed at restoring sustained and inclusive economic growth with particular attention both on the demand
and on the supply-side.
