Competitiveness In Research And Development: Comparisons And by Adam Torok, Balazs Borsi, Andras Telcs

By Adam Torok, Balazs Borsi, Andras Telcs

This booklet builds at the premise that the effectiveness of nationwide efforts to extend spending on R&D should be approximated by way of the competitiveness of that financial system in overseas markets. construction on a couple of present ‘benchmarking’ reviews that experience up to now basically ranked international locations in accordance both to their R&D symptoms, or their performances in innovation, this can be the 1st ebook to provide a synthesized evaluation of the R&D competitiveness of nationwide economies in response to either enter and output comparable signs. a number of quantitative equipment are used to mix those lists with a wide selection of R&D signs. The publication confirms one of many significant premises of the Lisbon method – that Europe is considerably lagging in the back of its in another country opponents in R&D.

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The ULC has been a quite widely used indicator, but its relevance for competitiveness analysis seems to be decreasing. The reason is the low relative share of labour costs within the total cost of production of a growing number of products traded internationally (see the sectoral analyses in Scherer, 1996). To make things worse, the ULC indicator does not show the extent to which the level of technology, or even the presence of modern technology, influences competitiveness levels. We have serious methodological doubts regarding the applicability of ULC for international comparisons.

To look in the opposite direction, Angola, Bangladesh, Myanmar or even Albania have few products (if any) that can compete with those made in Poland. The focal point of our approach is the microstructure of exports. This means country A can export goods belonging to the same commodity groups that are also well represented in the export lists of the ‘best’ and the ‘worst’ countries omitted from the direct comparison of competitiveness. The problem is however that few products offered by country A have substantial degrees of substitutability with goods having considerable percentage shares in the exports of the ‘best’ and the ‘worst’ countries.

To make things worse, the ULC indicator does not show the extent to which the level of technology, or even the presence of modern technology, influences competitiveness levels. We have serious methodological doubts regarding the applicability of ULC for international comparisons. Namely such application is conditional on the validity of the assumption formulated in the Heckscher-Ohlin theorem that each industry has a same level of factor intensity in every country (that is the ranking list of industries expressing their relative factor intensities is identical in each national economy).

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