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The Internationalisation and Competitiveness Research Programme integrates the two research areas of International Economics and Technology, Innovation and Productivity. It is organised as a research centre, the Centre for Internationalisation and Competitiveness. Research in this area is based on the most recent theoretical models in International Economics and Economic Growth and aims to provide empirical evidence to inform research, policymaking and civil society on key factors and policies underlying economic growth and competitiveness in the context of increased global interdependencies. Specifically, it focuses on the links between international integration and technological change and their effects on productivity, competitiveness and economic growth. Current research focuses on three broad themes:
Recent research has focused on five themes: (a) Economic Growth in Open Economies. This research was part of an international project DYNREG funded under the EU RTD 6th Framework Programme . It examined the effect of human capital on the growth of industries intensive in information and communications technologies (ICT) using data from a sample of open economies over the period 1980-1999. The econometric analysis suggests that value added and employment in information ICT-intensive industries grew relatively faster in countries with a higher ex-ante human capital stock and in countries with a fast improvement in human capital. Further, in countries with fast human capital accumulation, labour productivity in ICT-intensive industries grew faster. Our results are robust to controls for other determinants of industry growth and country characteristics affecting industry specialisation and to using alternative human capital measures. (b) Internationalisation of Services, Productivity and Growth. Research in this area is part of an international project (SERVICEGAP), funded under the EU RTD 7th Framework Programme. One strand of this project focuses on the effects of international trade in services on productivity and growth. A second strand analyses the effects of international investment on productivity and employment growth. Our research shows that larger firms, domestic exporters and firms closer to the global technology frontier were more likely to engage in R&D and innovation and they were more likely to be successful in terms of innovation output. Further, we find that adoption of ICT was positively associated with innovation output. Co-operation with suppliers was positively associated with all innovation types, while knowledge flows from customers and from the government were positively linked to product innovation. Co-operation with universities was positively linked to innovation measured by patents. (c) Foreign Direct Investment and Productivity Spillovers. Research on the implications of foreign presence and competition for the domestic firms in the Irish services sectors is part of a project funded under a grant from the Irish Research Council for the Humanities and Social Sciences (IRCHSS). This research examines the presence of knowledge spillovers or competition effects from foreign-owned firms that affect the productivity of domestic firms in three Irish services sectors. It takes into account the possibility that some domestic firms may benefit while others may suffer depending on their ability to learn from the subsidiaries of more efficient foreign firms. The results suggest that there is no significant effect when the three market services sectors are considered together; however, at the level of the individual sector foreign presence increases the productivity of domestic firms in some whereas it creates a more uncertain business environment in others. (d) The Economic Impact of Information and Communication Technologies. Research in this area has taken place as part of an international research project on the knowledge economy, economic transformations and information and communications technologies (ICT) in the European Union (EU) funded by the European Commission’s Institute for Prospective Technological Studies. Karlsson et al. (2010) reviewed the relevant theoretical and empirical literature to provide a conceptual and methodological background for the analysis of the consequences of ICT use and globalisation on the regional economies in the European Union. It highlighted the key aspects of ICT as a general purpose technology, discussed the economic impacts of ICT diffusion from a macro as well as from a micro perspective, and examined the spatial consequences of ICT diffusion. A General Synthesis Paper brings together the key findings and policy messages from the research on the knowledge economy, economic transformations and ICT in the European Union (EU). In particular, the following key policy lessons are highlighted: the importance of a systemic and co-ordinated policy approach to develop the necessary structures and networks required by the interplay between ICT use, globalisation, regional innovation systems and regional economic performance; the importance of a long-term policy commitment combined with a certain degree of flexibility given the necessary learning, the non-linear dynamics of the regional development process and rigidities which may delay necessary adjustment; the role of public policy in enabling structural change, sectoral diversification; the importance of fostering knowledge-spillovers and linkages between foreign and domestic firms; the importance of fostering intra- and inter-industry network effects and knowledge spillovers; the role of public procurement and e-government; the role of EU Structural Funds. Finally, our research suggests that any policy design should account for region-specific characteristics. Given differences in framework conditions and stages of development, a “one-size-fits all” approach may not lead to the same effects in all regions. (e) International Linkages, Innovation and Productivity. Research in this area is part of a project funded by the IRCHSS. Siedschlag, Zhang and Cahill (2010) analysed the effects of the internationalisation of firms via foreign direct investment and trade on their innovation and productivity performance. The econometric results show that foreign-owned firms and domestic exporters were more likely to invest in innovation and furthermore, they were more likely to be more successful in terms of innovation output (product, process, and organisational innovations) and higher productivity than firms that served only the Irish market. Innovation output was positively associated with labour productivity over and above other determinants such as foreign linkages, firm size as well as unobserved industry, firm and time specific effects. For all types of innovations, knowledge flows from co-operations with suppliers, with consultants, commercial labs or private R&D institutes, and with universities or other higher education institutions were positively associated with innovation output over and above other determinants. We find both similarities and differences in the relationships between innovation investment, innovation output and productivity for manufacturing and services, and for technological and non-technological innovation. Future Research Building on current work, future research will analyse:
Programme Coordinator - Iulia Siedschlag Other staff currently working in this area include: John FitzGerald, Stefanie Haller, Edgar Morgenroth, Gavin Murphy, Frances Ruane, Richard S. J. Tol and Xiaoheng Zhang. ESRI research in Internationalisation and Competitiveness is linked to research in Macroeconomics, Competition & Regulation, Education, Labour Markets, Demography and Migration.
According to RePEc, ESRI is ranked among the top 10 per cent institutions in the world in the following four research fields covered by this Research Programme: European Economics, International Trade, Economic Geography, and Efficiency and Productivity. |
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