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Market Integration and Technological Leadership in Europe

Author(s): René Belderbos, Leo Sleuwaegen, Reinhilde Veugelers

Market Integration and Technological Leadership in Europepdf

Summary for non-specialistspdf

This study traces and analyses the changes in firm and industry structure due to EU market integration and the integration of the EU in the global economy. It focuses on changes in competitiveness based on innovation and technology development.

The study provides information on the production, technology structure and geographical distribution of leading European firms. A database with firm-level data has been established and complemented by estimates of indicators of industry structure, including the diversification and technological advancement of a firm's production, the intra-EU multinationality of firms, as well as the degree of concentration and geographical agglomeration of industries. An in-dept empirical analysis of the relationship between technological leadership and market leadership has been conducted. The results indicate an increasing importance of technology for production leadership. Firms with the strongest market positions combine a broader technology portfolio strategy, while ensuring a deeper technology position in the sector of dominance. Technology leadership has a strong impact on the production share that new entrants can attain. The study confirms a positive link between technology and market leadership growth.

(European Economy. Economic Papers 403. February 2010. Brussels. PDF. 152pp. Free.)

KC-AI-10-403-EN-N (online)
ISBN 978-92-79-14889-7 (online)
ISSN 1725-3187 (online)
doi: 10.2765/39481 (online)

JEL classification: D21, L25, L60, O33

Economic Papers are written by the staff of the Directorate-General for Economic and Financial Affairs, or by experts working in association with them. The Papers are intended to increase awareness of the technical work being done by staff and to seek comments and suggestions for further analysis. The views expressed are the author’s alone and do not necessarily correspond to those of the European Commission.

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