Abstract
Increases in the technological sophistication of some emerging economies, linked, in part, to shifts in the distribution of innovation activities from developed to emerging economies has attracted a lot of attention. Whether emerging economies will catch up with developed regions in terms of innovation and technology remains an open question. Various methods can be used to measure the technological capacity of an economy, though most suffer from a number of significant problems. In this paper, I present a relatively new measure of a country´s technological sophistication based upon the goods that it exports. The empirical analysis focuses on exports to the European Union over the period 1990-2009. Special attention is paid to China, which has made a huge progress in technology and innovations in the past years. Based on this analysis, China´s technological capabilities correspond with its income level and thus China does not seem to threaten the technological position of the EU yet.
Highlights
Rising technological and innovative capabilities in some emerging economies, especially in China, have attracted a lot of attention since these economies are starting to challenge the capabilities of the historic Research and development (R&D) leaders
This paper focuses on whether China is catching up6 with developed countries in technology, innovations and R&D
Lower prices can indicate lower quality, China is often accused of manipulating the value of the yuan in order to give a competitive advantage to Chinese exporters
Summary
Rising technological and innovative capabilities in some emerging economies, especially in China, have attracted a lot of attention since these economies are starting to challenge the capabilities of the historic R&D leaders. The question is whether the technological capabilities in China are rising significantly and can be a threat to the economic position of developed countries. The productivity gap between the US and Japan on the one hand and Europe on the other hand is widening. Fiscal problems in Europe may restrict investment for several years and thereby higher divergence among EU countries is expected in this decade. The share of R&D and innovations among the developed regions of the world is expected to decrease most significantly in the EU
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
