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

By Dimitri Mardas

Abstract

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.Innovation, intra-industry trade, hierarchy J.E.L. codes: F14, O20,

DOI identifier: 10.1080/10438599500000014
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