Do Inter-sectoral Linkages Matter for International Export Specialisation?

This paper basically adopts a ‘technology gap’ approach for explaining international export specialisation. Within this broad label there has been one tradition which has applied cumulativeness in technological change as an explanation, while another tradition has emphasised the role of inter-sectoral linkages (the so-called home market effect) in this context. However, given that the sources of innovation (inducements mechanisms) differ between firms
according to principal sector of activity, different variables should not be expected to be of equal importance across industrial sectors. Thus, using the Pavitt taxonomy as a starting point, the paper statistically investigates the importance of variables reflecting different inducement mechanisms, across 9 OECD countries. The paper concludes that the two types of technological activities, namely technological activities in the ‘own’ sector, and inter-sectoral linkages are both important in the determination of national export specialisation patterns. However, the importance differ according to the mode of
innovation in each type of sector.