Technological Innovation in New European Union Markets

Ainura Uzagalieva (), Evžen Kočenda and António Menezes
Additional contact information
Ainura Uzagalieva: Centre of Applied Economics Studies of the Atlantic at the Department of Economics and Management, the University of the Azores, Portugal

No 312, Working Papers from Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies)

Abstract: We analyze the role of innovation in the technological development of four new EU members: the Czech Republic, Hungary, Poland and Slovakia. For that purpose, we use a novel approach by modeling the empirical relationship between intra-industrial bilateral trade flows, which proxy the level of technological progress, and innovation expenditures within the context of a gravity model with a set of appropriate instrumental variables to account for the potential endogeneity of innovation to trade. We show that innovation efforts in high-tech industries exhibit a strong effect on the technological progress of the region and they are closely linked to foreign direct investment and multinationals. As foreign-owned subsidiaries become a part of the innovation systems and industrial structure of the host country they promote overall technological growth in the region.

Keywords: foreign direct investment; innovation; imitation; international trade; European Union (search for similar items in EconPapers)
JEL-codes: C51 F14 F21 O31 (search for similar items in EconPapers)
Pages: 32
Date: 2012-03
New Economics Papers: this item is included in nep-cse, nep-eur, nep-ino, nep-knm and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
http://www.oei-dokumente.de/publikationen/wp/wp_ios_312.pdf (application/pdf)

Related works:
Journal Article: Technological Innovation in New EU Markets (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ost:wpaper:312

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies) Contact information at EDIRC.
Bibliographic data for series maintained by Kseniia Gatskova ( this e-mail address is bad, please contact ).