The role of ICT knowledge flows for international market share dynamics

This paper investigates the role of Information and Communication Technologies (ICTs) related knowledge flows for international market shares. Using bibliometric data on scientific publications, we analyse the relationship between the strength of 14 OECD countries in four ICT-related scientific fields and the ability of those countries to maintain and acquire export market shares in the OECD market, across 16 manufacturing industries over the period 1981-2003. We find that domestic and foreign ICT-related scientific knowledge flows have a positive and significant impact on export market shares in ICT industries, while only domestic flows positively affect export shares in non-ICT industries. We also find that small open economies benefit more than other countries from foreign knowledge flows both in ICT and in non-ICT industries.