Competitiveness of high-tech exports in the EU countries

Abstract

The global economy is changing rapidly. In recent years we have witnessed radical changes in global exports, as well as in manufacturing sectors. The increasing role of innovative and disruptive technologies was one of the critical factors that stimulated these processes. Nowadays, knowledge-intensive and innovation-absorbing industries are perceived as primary drivers of economic growth and economy’s competitiveness. On the other hand, developed and competitive economies can create a favorable environment for further adoption of the newest technologies and serve as reservoirs for the most promising technologies. Globalisation and internationalisation, as well as evolution of global trade relations, affect both businesses and economies. Also, observed technology spillovers and trade shifts have led to reformulation and redefinition of competitive advantages. This paper aims at evaluating export performance and competitiveness in high-tech sector across the EU. The authors have conducted this study using constant market shares analysis (CMS), a well-known method of export decomposition.