Affiliation:
1. Faculty of Economics and Business Administration, Vilnius University, Vilnius, Lithuania
Abstract
This study investigates the efficiency growth of advanced technology-generating sectors within the European Union (EU). Using a stochastic frontier analysis of annual sector-level panel data from 2000 to 2019, we examine sectoral (NACE two-digit level) and territorial implications. Our findings indicate that technological change was more intense in advanced technology-generating sectors than in other economic sectors, primarily driven by fixed capital investments. However, the impact of in-house research and development varied. Economic sectors such as pharmaceuticals and motor vehicles struggled to improve their production efficiency due to high competition and market specificity. A comparative analysis of EU economies showed a lower level of production efficiency in catching-up economies. Nevertheless, these economies contributed to the shift of the production possibility frontier in certain sectors on the EU level. Therefore, this study contributes to the ongoing scientific discussion on technological innovations in diverse territories, suggesting that less-developed economies could generate technological advancements in specific areas. We also discuss the implications for innovation and industrial policy actions.
Publisher
Vilnius Gediminas Technical University
Reference52 articles.
1. Andrews, D., Criscuolo, C., & Gal, P. N. (2015). Frontier firms, technology diffusion and public policy: Micro evidence from OECD countries. OECD. Retrieved January 17, 2021, from http://www.oecd.org/economy/growth/Frontier-Firms-Technology-Diffusion-and-Public-Policy-Micro-Evidence-from-OECD-Countries.pdf
2. Battese, G. E., & Coelli, T. J. (1992). Frontier production functions, technical efficiency and panel data: With application to paddy farmers in India. Journal of Productivity Analysis, 3(1/2), 153-169. https://doi.org/10.1007/BF00158774
3. Bender, M., Henke, N., & Lamarre, E. (2018). The cornerstones of large-scale technology transformation. McKinsey Quarterly. Retrieved August 29, 2021, from https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/the-cornerstones-of-large-scale-technology-transformation
4. Bresnahan, T. F., & Trajtenberg, M. (1995). General purpose technologies "Engines of growth"? Journal of Econometrics, 65(1), 83-108. https://doi.org/10.1016/0304-4076(94)01598-T
5. Burger, M. J., Kounetas, K., Napolitano, O., & Stavropoulos, S. (2022). Do innovation and human capital actually narrow the technology gap? Champions and laggards of European regional productive performance. Regional Studies, 556(10), 1655-1700. https://doi.org/10.1080/00343404.2021.2000596