Technological Innovation in New EU Markets

Ainura Uzagalieva, Evžen Kočenda and António Menezes

Emerging Markets Finance and Trade, 2012, vol. 48, issue 5, 48-65

Abstract: We analyze the role of innovation in the technological development of four new members of the European Union: the Czech Republic, Hungary, Poland, and Slovakia. For that purpose, we use a novel approach, modeling the empirical relationship between intraindustrial bilateral trade flows, which represent the level of technological progress, and innovation expenditures within the context of a gravity model having a set of appropriate instrumental variables to account for the potential endogeneity of innovation to trade. We show that innovation efforts in high-tech industries exhibit a strong effect on the technological progress of the region and they are closely linked to foreign direct investment and multinationals. As foreign-owned subsidiaries become a part of the innovation systems and industrial structure of the host country, they promote overall technological growth in the region.

Keywords: European Union; foreign direct investment; imitation; innovation; international trade (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=T33833676W511838 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Technological Innovation in New European Union Markets (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:48:y:2012:i:5:p:48-65

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().