Manufacturing the future: is the manufacturing sector a driver of R&D, exports and productivity growth?

Alex Coad () and Antonio Vezzani ()

No 2017-06, JRC Working Papers on Corporate R&D and Innovation from Joint Research Centre

Abstract: 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.

Keywords: Manufacturing sector; R&D; exporting; productivity; industrial policy; industrial renaissance (search for similar items in EconPapers)
JEL-codes: O14 O3 O47 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2017-09
New Economics Papers: this item is included in nep-cta, nep-eff, nep-ino, nep-int, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ipt:wpaper:201706

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