The transmission of sectoral shocks across the innovation network

Arbeitspapier

Recent innovation literature has documented the benefits of cross-pollination of ideas across a wide set of industries and technology fields in an economy. Industrial and trade policies, by contrast, tend to favor economic specialization through the promotion of selected sectors. In this paper we use a firm-level panel of 13 European countries to assess whether an industry-specific policy propagates across the network of innovating firms through technological linkages. Following the competition shock to the European textile sector, triggered by the 2001 removal of import quotas on Chinese textiles, we find that patenting and knowledge sourcing behavior of non-textile firms are negatively affected. At the aggregate regional level, this indirect effect on non-textile firms can be around three to five times larger than the direct effect.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper ; No. 229

Classification and Topics

• Classification: Wirtschaft ; General Equilibrium and Disequilibrium: Input-Output Tables and Analysis ; Firm Performance: Size, Diversification, and Scope ; Industry Studies: Manufacturing: General ; Technological Change: Choices and Consequences; Diffusion Processes ; Technological Change: Government Policy
• Subject: technological linkages ; spillovers ; patents ; knowledge sourcing ; industrial policy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fons-Rosen, Christian ; Pu, Zhaoxin
• Event: Veröffentlichung
• (who): Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition
• (where): München und Berlin
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/222126
• Last update: 10.03.2025, 11:45 AM CET