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R&D Accessibility and Comparative Advantages in Quality Differentiated Goods
Jönköping University, Jönköping International Business School, JIBS, Economics. (CESIS)
2008 (English)In: ICFAI Journal of Knowledge Management, ISSN 0972-9216, Vol. 6, no 6, p. 29-51Article in journal (Refereed) Published
Abstract [en]

This paper analyzes the influences of human capital and technology transfers from R&D activities on regional export specialization along the range of product quality. This study contributes to previous research on specialization and trade in quality differentiated goods by addressing the influence of spatial knowledge flows on the observed patterns of regional quality specialization. A theoretical model of endogenous quality choice derives regional comparative advantages to the presence of external knowledge flows from R&D activities. The potential of such knowledge transfers is modeled by accessibility variables, which deduce the potential of knowledge spillover from R&D activities to the geographical distribution of such activities and the observed patterns of spatial interaction. The impacts of regional R&D accessibility on regions’ revealed comparative advantages in production of high quality goods are subsequently examined in a two-dimensional cross-regional regression analysis. The results of this empirical work show significant positive effects of knowledge and R&D accessibility on the revealed comparative advantages in production of high quality goods in Swedish regions. The empirical analysis also provides evidences of technology spillovers from abroad, as the presence of multinational firms increases the region’s specialization in high-quality product segments. These results are robust over four different specifications of above-average product qualities.

Place, publisher, year, edition, pages
Hyderabad: The ICFAI University Press , 2008. Vol. 6, no 6, p. 29-51
Keywords [en]
product quality, vertical differentiation, knowledge, accessibility, spatial dependence, comparative advantage, technology
National Category
Economics
Identifiers
URN: urn:nbn:se:hj:diva-11378OAI: oai:DiVA.org:hj-11378DiVA, id: diva2:287929
Available from: 2010-01-20 Created: 2010-01-20 Last updated: 2010-01-21Bibliographically approved

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CiteExportLink to record
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