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The aim of the paper is to investigate the relative importance of international vis‐à‐vis national technological linkages for international competitiveness for 19 industrial sectors. We estimate a dynamic model with an autoregressive structure in the dependent variable. In the paper competitiveness is captured both by cost competitiveness and by technological competitiveness. The main result is that while national linkages have a positive impact on the trade balance in several sectors (mostly scale intensive and specialised suppliers), this is not the case for international linkages.
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Keld Laursen (2002) studied this question.
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