Technology accumulation and diffusion : is there a regional dimension?

Recently, interest in regionalism has mushroomed, and economists have analyzed it not only from the viewpoint of trade but that of foreign investment, macroeconomics, and political economy. But questions of technological regionalism -whether the accumulation and diffusion of technology has a regional dimension- have been considered only marginally and indirectly. The author offers an exploratory analysis of the regional dimension of technology and diffusion, examining both country and sectoral aspects of it. Empirical results suggest that regional trade agreements do not necessarily lead to spillover paterns in regional knowledge. But knowledge may be diffused through vehicles other thn trade. National patterns of technological accumulation seem more important than regional patterns. In particular , more internationalized economies seem capable of commanding a substantial amount of knowledge diffusion, which may sometimes follow regional patterns. These conclusions are partly confirmed by sectoral estimates that show that regional patterns of knowledge diffusion are highly sector-specific. The knowledge bae varies greatly across sectors.