Technological specialization and economic performance in OECD countries

The paper investigates the. growing sectoral specialization in technological activities of OECD countries (measured using patent data) and its impact on countries) innovative and economic performance in the 1975-1990 period. Aggregate indicators of sectoral specialization are introduced, showing the extent to which countries concentrate their innovations in few fields, or spread them across several sectors. A general positive relationship is found between the degree of specialization in technology and higher rates of growth, while specialization in electronics-related fields is not associated to better economic or technological performances. The position of individual countries in these patterns is also examined, showing that specialization has been an element of the catching-up process of the past decades, which has led to a growing economic convergence among OECD countries.