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The impact of the scope of technological search on path-dependence in export specialization: evidence for European countries
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.
Forschungsbereich:Industrieökonomie, Innovation und internationaler Wettbewerb