Innovation
International Exports
Description: This indicator measures the dollar amount of shipments of advanced technology goods and of all goods, on an origin of movement basis, for Arizona and the United States. Advanced technology goods, as defined by the U.S. Census Bureau, come under the categories of biotechnology, life science, opto-electronics, information and communications, electronics, flexible manufacturing, advanced materials, aerospace, weapons, and nuclear technology. The goods are identified by the Harmonized Schedule and grouped into the advanced technology category.
The data are inflation adjusted using the gross domestic product (GDP) implicit price deflator. The inflation-adjusted dollars are expressed in terms of the latest year of data available.
Rationale: Regional economic theory states that a local economy is driven by “basic” economic activities that import money into the local area through the sales of goods and services to customers who do not live in the area. International exports are an important component of a state’s exports. Innovation is more common in export activities, particularly of advanced technology goods. Economic prosperity in a region is closely correlated to the region’s ability to attract export-based industries.
Data Sources: Global Trade Information Services http://www.gtis.com/english. The advanced technology data are available only on a subscription basis from this source. The producer of the data is the U.S. Department of Commerce, Census Bureau, which publishes only summary data at http://www.census.gov/foreign-trade/statistics/state/index.html. The GDP implicit price deflator is available from the U.S. Department of Commerce, Bureau of Economic Analysis http://www.bea.gov/national/nipaweb/SelectTable.asp?Selected=Y (Table 1.1.9).
Comments on the Quality of the Data: The geographic location of the exports is based on the origin of movement, not production origin. The location assigned may be that of a distribution center rather than the manufacturing facility. In addition, the origin of movement is assigned to the point at which shipments are consolidated (if they are consolidated). Agricultural products are more subject to being consolidated than advanced technology goods.
