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Revealed Comparative Advantage (RCA) of Selected Countries in Foreign Trade in R&D-intensive Goods
The specialization pattern of a country in foreign trade can be measured with the help of the Revealed Comparative Advantage (RCA) indicator.1 It records the export/import ratio of a product group in relation to the export/import ratio of the processed industrial goods of a country as a whole.
As in previous years, Germany had a positive value for the RCA indicator in 2021 and thus a comparative advantage in trade with R&D-intensive goods. R&D-intensive goods consist of high-value technology goods and cutting-edge technology goods.
However, a more differentiated look at these two groups of goods shows that Germany's comparative advantage was only positive for trade in high-value technology goods, while it was negative for trade in cutting-edge technology goods. In an international comparison, Japan had the highest comparative advantages in high-value technology and Switzerland in cutting-edge technology.
While China was able to almost offset its comparative disadvantages in the field of high-value technology from 2011 (RCA value -30) to 2021 (RCA value -3), Switzerland recorded the largest increase of a comparative advantage in the field of cutting-edge technology during this period.