CONNECTING INTERNATIONAL RiD COOPERATION AND TECHNOLOGY SPECIALIZATION IN OECD COUNTRIES

Abstract

Technology specialization is supported by processes combining inhouse and external innovation. Applying a macroeconomic and international trade theory approach (Linder, 1961), country specialization depends on international RiD cooperation partnerships. External, international RiD cooperation is essential for technology specialization, as it raises awareness of countries’ position on a global technology map. This paper studies international RiD cooperation as a determinant of countries’ technology specialization. Cross-country panel regression was done on a sample of 37 OECD countries for the period 1980-2018. The analysis examined the effect of international RiD cooperation on technology specialization. Data were obtained from the OECD database. Co-patenting with foreign inventors was used to indicate the level of international RiD cooperation. Patent per technology was used to calculate technology specialization based on the Herfindahl index. Results indicate a positive effect of international RiD cooperation on technology specialization. The effect of RiD cooperation on technology specialization is more pronounced when GDP and RiD expenditure were used as control variables. Additionally, the size of the GDP negatively affects technology specialization. This paper identifies international cooperation as a bridge for global information exchange, which results with countries’ technology specialization.