This paper extends the LSDV bias approximations in Bun and Kiviet (2003) to unbalanced panels. The approximations are obtained by modify-ing the within operator to accommodate the dynamic selection rule. They are accurate, with higher order terms bringing only decreasing improve-ments to the...

This paper analyzes the contribution of Virtual Design Tools (VDTs) to the processes of knowledge replication and recombination in the context of product innovation. On the basis of an in depth case study of two automotive firms engaged in two comparable new product development projects, we show...

This paper presents a critical review of the Global Value Chain literature in light of the “Technological Capabilities” approach to innovation in LDCs. Participation in GVC is beneficial for firms in LDCs, which are bound to source technology internationally. However, the issues of learning...

This paper examines whether location in strong industrial clusters translates into a higher probability of innovating. A firm-level analysis of the UK and Italy is performed. Innovative activities of firms (European patent data for 1988-98) are related to regional employment, other...

This paper deals with the long term effects of several important trade policy initiatives implemented by the EU in the last decade: the European Agreements, the Euro-Mediterranean Agreements and the Customs Union with Turkey. The analytical tool is GTAP, a static and perfectly competitive CGE...

This paper investigates the size and scope of global production sharing in the telecom sector by analysing the international pattern of trade in telecom parts and components using bilateral trade statistics over the period 1978-2000. The results show that since 1995 the US have taken over the...

This paper examines the empirical dynamics of countries' technological specialization in six technology fields using distribution dynamics, a methodology involving non-parametric estimation of probability distributions and Markov stochastic kernels for each field. Innovation in all the fields is...

This paper investigates e-commerce strategies when in addition to the price, firms can control the size of the market area. Due to the shape of the commercial costs (e.g. costs of the e-commerce activity) the following results emerge: 1) if the average costs of commercial are decreasing in the...

The expansion of South-North and South-South FDI reflects the rise of cross-border capital flows, a distinguishing feature of the contemporary global economy, together with the increasing size and complexity of emerging market multinational corporations (EMNCs). Against this background, in...

In traditional trade models, whether based on technological differences or on relative factor endowments, merchandise composition and directions of trade are derived from closed-economy, pre-trade conditions. But nowadays one the basic assumptions of traditional trade models, i.e. that...