Innovation Policy Essay Example | Topics and Well Written Essays - 2500 words

Innovation Policy - bear witness ExampleSuch countries have increased their focus on developing and enhancing technologies and this has helped in improving their profits. On the other side, there are countries that have substantial merchandise economies by utilising the technology that devised by merchandise countries. Policies of both these types of countries related to technological adaption have played a significant object in gear up the international throw pattern. Role of technology in developing a pattern of vocation had been make with various other dimensions as well. In addition, the technological advancement has also received criticism for its role. Hence, the role of technology in trade policy is of immense importance non only for academic purpose but also from the perspective of an economist as well. Role of technology in trade is progressively being considered as a game changing variable in international trade and stinting scenario. Europe has enjoyed the ben efits of technological breeding and it has dominated over the years because of technological advancement. Europe at the minute is considering the other side of opportunities towards technological advancement as it is focusing on southern countries with import dependencies. Hence, the show develops a review of literature on the role of technology in the international trade and economic environment. ... Krugman (1979a) has developed an equilibrium model that determines trade pattern as a result of technology adaption or improvement of countries. Krugmans equilibrium model has two types of countries north and south. Northern countries have been focussing on developing technological expertise that increases earnings per technological development and labour efficiency by not increasing the non-human input. Northern countries have also been focussing on developing new products and then export these products to southern countries with charging additional rentals or prices for innovation being offered. Referred countries with dominance on new product development also benefit with transportation-inn of movable capital that includes both increased foreign direct investment as well as skilled labour. Increased efficiency with technological advancement results in labour receiving high wage rate despite of similar productivity rate as of southern side countries. On the other side are southern side countries, these countries focus on receiving technological advancement from developed (northern) countries. Southern countries focus on manufacturing old products and export them to north for meeting their demand. Hence, according to Krugman (1979a) technological developments determine the pattern of international trade. Apart from this north south model that determines the position of importer and exporter in international trade theory, Krugman (1979b) has also documented reason of trade between countries with similar technological position. Krugman (1979b) cites the reason for such trade i.e. trade between countries in north or south category as to be the economies of scale. Hence, adopting Chamberlinian cash advance for defining trade being