Measuring the size of the technology gap at a level of Czech regions
Date
2018
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of Pardubice
Abstract
The technology gap is one of key determinants of spillovers. This paper aims to
quantify the size of the technology gap between foreign direct investments, which received
investment incentives and business environment in six regions of the Czech Republic in time
series of 2002-2014. The development of regional technology gap was determined by using
the Shift-share analysis method - decomposition of the region's technological level into
productivity, employment, and a combination of both of the effects. The main data source was
the statistics issued decisions of investment incentives published by the agency CzechInvest;
annual reports of foreign companies; data of the Czech Statistical Office and the OECD. The
established indicator tracks the difference between the technological advancement of foreign
firms and a regional business environment. The higher the value of this indicator than in other
regions is, the higher the potential for technological growth the region has than regions
compared. The magnitude of the value is given by the technological level of foreign companies
and their share in regional employment. The best position takes the Pilsen region, which has
the highest potential for spillovers in terms of the technology gap. On the contrary, the worst
position has the Carlsbad region.
Description
Subject(s)
Foreign direct investment, Foreign presence, Investment incentives, Productivity, Technology gap.
Citation
ISSN
1211-555X