Annals of the University of Oradea: Economic Science (Dec 2010)
INTERNATIONALIZATION AND INNOVATION: THE CHALLENGES FOR EUROPE IN A CHANGING WORLD
Abstract
A large part of the economic literature is unanimous in believing technological progress and openness to foreign trade are key variables to trigger the processes of stable and persistent economic growth. An in-depth analysis of these factors, thus, becomes necessary both to meet the challenges of the international market, and to strengthen the European integration process. This paper aims to provide an empirical analysis of the interaction between foreign trade and technological progress by performing a multidimensional scaling. This technique is used to produce a graphical representation of the 27 EU member states, in accordance to the degree of similarity or dissimilarity between them. The indicators used, and the indexes calculated, reflect the different degree of internationalization of each countrys economy, the regulation of trade flows, investment in specific RD and technological progress.
