Annals of the University of Oradea: Economic Science (Jul 2013)
A SNAPSHOT OF THE TECHNOLOGICAL COMPETITIVENESS OF COUNTRIES
Abstract
It is well known that technology is a key factor for the economic progress and helps countries competing more successfully in markets for new goods and services. Technological competitiveness becomes this way closely related to the degree of innovativeness of a country. Although there are several indicators that measure directly the innovativeness of a country, there are still problems at the moment related to the availability of data. In this paper, we decided to assess the technological competitiveness of countries, based on a structural decomposition analysis of the patent shares on the world market. Unlike other authors who applied this methodology in their studies, we collected our data from the World Intellectual Property Organization (WIPO) Statistical Database, covering 12 years, from 2000 till 2011 and we took into consideration 35 technology subsectors in 33 countries (EU 27, China, Canada, Japan, US, Switzerland and Norway). This approach should highlight the countries’ technological opportunities on the world level and measure their access towards sectors with high technological opportunities. Structural decomposition analysis points out the extent to which the shifts between technological sectors were induced by the changing technological environment on the world level. The analysis also shows the extent to which a country has an advantage/disadvantage from its past specialization pattern, having had a priori patenting activities in sectors that are now offering high opportunities and the extent to which the country deliberately moved into high opportunity technology sectors, or at least out of the industries with declining opportunities. The outcomes showed that technological development of countries on the world market played an important role for the patenting activity, being highly related to a well-developed infrastructure and pointed out that there are still a lot of European countries facing problems related to the technological infrastructure and technological capabilities. Countries that managed to keep their market shares high and also to increase their market shares over the years, while taking advantage of high opportunity sectors at the world level are the real leaders in terms of technological development. These countries are Japan, US, and China from the European states: Germany, France, Netherland, and Switzerland.