Determinants of diffusion and downstreaming of technology-intensive products in international trade

The patterns of trade for a broad category of technology-intensive products, including advanced technology products (ATP), are analysed for a group of 15 economies in Asia, Europe, and the United States. This chapter finds that the degree of downstreaming is highly sector- and product-specific. For example, there has been more downstreaming of electronics than chemicals, of consumer electronics than electronic components, and of certain basic chemicals than specialized products, such as photographic film and cosmetics. The chapter also discusses the roles of technology, national and sectoral innovation systems, government policies, and other factors in shaping the degree of diffusion and downstreaming.