Can technology lead to a competitive advantage? A case study of Flanders using European patent data

The study tries to analyze regional technological capabilities, linking tec hnological positions to economic strength of the region. To measure this li nk, we correlate the EPO patent data with trade data to assess the degree t o which technological advantages are translated into comparative advantages for the Flemish region in Belgium. The analysis for Flanders provides some interesting insights. Following the skewed distribution of firms, the tech nological areas in which Flanders is able to build a strong position are ve ry specific: printing technology, weaving technology, photography and recen tly also telecommunications. Weak positions are outspoken in car technology . Linking these strengths and weaknesses in technological areas to economic activity revealed an important mismatch between both. Most of the Flemish patents are in sectors without any comparative advantage, while most of the sectors where Flanders does hold a comparative advantage, like chemicals a nd pharmaceuticals, do not show strong technological advantages in terms of patents. Given the mismatch that was detected between technological positi ons and economic advantages, it is of crucial importance to better understa nd the (missing) links between the various actors in the regional innovatio n system. The analysis points out two important issues. The large and growi ng number of foreign applicants to Belgian/Flemish inventors and the large number of subsidiaries of foreign firms among Belgian/Flemish applicants il lustrate the pervasiveness of the foreign dimension in the Belgian/Flemish technological landscape. Also very specific to the Belgian/Flemish situatio n, is the limited importance of universities or research centers in terms o f patenting activities.