Showing papers by "Kiel Institute for the World Economy published in 1977"

International Trade and Technological Innovation: The German Position vis-a-vis Other Developed Market Economies

Abstract: The competitive strength of United States’ manufacturing industries in world markets, as has been shown in various empirical studies1), is closely correlated with the performance in technological innovation, as measured by several proxies, e.g. resources devoted to or personnel engaged in research and development (R&D). Empirical evidence suggests that the United States posseses a comparative advantage in R&D activities. This pattern would be in accordance with the alleged technological gap between the United States and leading European industrial countries, e.g. the Federal Republic of Germany, a topic which in recent years has stimulated an extensive public discussion as well as a rather exciting economic debate. The United States was often seen to be in a position of monopolizing technological innovation and the major benefits from these innovations whereas European countries appeared to fall behind more and more technologically. European backwardness seems to have been especially manifested in the enormous inflow of American capital. It was hardly taken into account that American direct investment in Europe involved an intensive transfer of modern technology which might have tended to reduce technological gaps -where gaps really did exist.