Technological Innovation, Demand Structure, Intra-Industry Trade And Hierarchy Of Economies-A Three Dimensional Presentation

This paper aims to present an alternative version on countries' hierarchy, based on Posner's technological gap, on Linder's concept of demand structure and on intra-industry trade. These theoretical developments based in the same time on supply and demand can provide a more complete perspective on this matter. Three variables are used for this goal: i)the ratio of research and development (R&D) expenditure to production (ii) per capita income (iii)the index used by Grubel and Lloyd (1975) on intra-industry trade. The results, presented in terms of geometrical approach, concern the twelve Member-States of the European Communities.