Does manufacturing stir up innovation?
INDUSTRIAL R&D - JRC Policy Insights
- Because of its positive contribution to employment and economic growth, the EU has set a manufacturing target of 20% of GDP. This could also boost R&D, productivity and exporting.
- Our analyses do not find empirical evidence that a large manufacturing sector has a direct influence on exporting activity or productivity growth.
- We find a positive association between manufacturing and R&D investment. The EU manufacturing strategy could help reaching the 3% R&D intensity target.
- However, the link between manufacturing and R&D depends on the industrial structure of a country. Support to new high-tech sectors should be coupled with actions to encourage technological upgrade in existing ones.
COAD Alexander;
VEZZANI Antonio;
2017-11-24
European Commission
JRC108213
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