CONNECTING INTERNATIONAL R&D COOPERATION AND TECHNOLOGY SPECIALIZATION IN OECD COUNTRIES

Abstract: Technology specialization is supported by processes combining inhouse and external innovation. Applying a macroeconomic and international trade theory approach (Linder, 1961), country specialization depends on international R&D cooperation partnerships. External, international R&D cooperation is essential for technology specialization, as it raises awareness of countries’ position on a global technology map. This paper studies international R&D cooperation as a determinant of countries’ technology specialization. Cross-country panel regression was done on a sample of 37 OECD countries for the period 1980-2018. The analysis examined the effect of international R&D cooperation on technology specialization. Data were obtained from the OECD database. Co-patenting with foreign inventors was used to indicate the level of international R&D cooperation. Patent per technology was used to calculate technology specialization based on the Herfindahl index. Results indicate a positive effect of international R&D cooperation on technology specialization. The effect of R&D cooperation on technology specialization is more pronounced when GDP and R&D expenditure were used as control variables. Additionally, the size of the GDP negatively affects technology specialization. This paper identifies international cooperation as a bridge for global information exchange, which results with countries’ technology specialization.

 

Key words: International co-operation; Country technology specialization; Cross-country panel regression; OECD.