Manufacturing the future: is the manufacturing sector a driver of R&D, exports and productivity growth? - JRC Working Papers on Corporate R&D and Innovation No 06/2017
Many industrialized countries in Europe and North America have experienced a steady decline in the manufacturing sector over the last few decades. Amid growing concerns that outsourcing and offshoring have destabilized European economies, policymakers have suggested that a large manufacturing sector can:
i) boost R&D,
ii) encourage exporting, and
iii) raise productivity.
We examine these claims. Non-parametric plots and regressions show a robust positive association between the manufacturing sector and Business R&D expenditures (BERD), while the relationship between manufacturing and exports or productivity is more elusive.
Finally, we explore whether a manufacturing sector target of 20% of value-added will help reach a BERD target of 3% of GDP.
COAD Alexander;
VEZZANI Antonio;
2017-09-11
European Commission
JRC107579
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