The export productivity of Brazil and Portugal by technological intensity : a spatial comparative analysis

This paper analyses the role of knowledge externalities, which may result from agglomeration economies and regional knowledge, on regional export productivity. Knowledge externalities are the result of knowledge transmission between economic agents, being its dissemination not limited to regional borders and varies between technological intensity sectors. Using a panel of 23 NUTS III Portuguese regions and the 137 Brazilian mesoregions with export data for High and Medium-High technological intensity and Low technological intensity sectors, we found a larger productivity gap between the High and Medium-High Technological sector and the Low Technological sector in Portugal than in Brazil. Using spatial econometric techniques, we found a positive impact of R&D on export productivity in the High and Medium-High Technological sector, but only in the Portuguese case. The spatial spillover effects are different in the two countries. The specialisation and diversifications economies have a negative impact on the export productivity in the Portuguese High and Medium-High Technological sector. In the Brazilian case, it was estimated a positive direct and total effect on productivity due to specialisation economies.