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Sector-specific patterns

For the product landscape as a whole

Values of HHI and EXPRELY were calculated for both 1997 and 2006 for 11 aggregates of products: the ten ATP technology categories, which together account for 177 of the 2 035 products, and non-ATP products in the product landscape as a single group, accounting for the other 1 858 products. The results are portrayed in graphic form in Figure 8.3. The non-ATP products in the product landscape, represented by group 0, correspond approximately to the middle-level income of Italy, and they both diffused and downstreamed moderately during the period. Of the ten ATP categories, there is a marked difference between electronics and information and communications, and all the others. While eight of the ATP categories are both more concentrated and more upstream than the typical products in our landscape, two ATP categories - electronics and information and communications - begin in a position downstream from the average in 1997 and moved further downstream, with the decline in EXPRELY for electronics being especially rapid.

These results highlight the fact that electronics, and to a lesser extent information and communication, represent special cases. One would expect that more technology-intensive products would usually be produced in high-income economies, and that the advantages of agglomeration in fostering innovation would be similarly associated with many of these products. The complex knowledge necessary for innovative success in biotechnology, aerospace, weapons, and nuclear technology keeps these products upstream and concentrated. The largest group of ATP products, “flexible manufacturing,” is relatively diffuse, but is still exported largely from high-income economies. This category includes advanced machine tools (including multiplanar and digitally controlled machine tools) used in many industries, and related instrumentation. The small category of “advanced materials,” which has actually moved further upstream between 1997 and 2006, includes doped wafers for manufacture of semiconductors, and optical fibres and cables; both of these are essential components for many of the products in the two ATP sectors that are moving rapidly downstream.

Figure 8.3. Census’ ATP products vary greatly in terms of diffusion and downstreaming

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