Economic Relevance and the Future Potential of Non-R&D-Intensive Industries

Sven Wydra () and Michael Nusser
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Sven Wydra: Fraunhofer Institute for Systems and Innovation Research ISI
Michael Nusser: Hanover University of Applied Sciences and Arts

Chapter Chapter 3 in Low-tech Innovation, 2015, pp 33-49 from Springer

Abstract: Abstract This book chapter focuses on non-R&D-intensive industry sectors and analyses their economic importance for Germany. Therefore we compare non-R&D-intensive industry sectors with R&D-intensive-industry-sectors and service sectors regarding R&D activities, domestic value added and import intensity, production, employment and skills. In order to not only include direct effects for these indicators we also analyze indirect effects via input-output (I/O) analysis by simulating the potential effect additional 1 billion euros demand impulse in the various sectors. On the one hand, our results show that the dynamics of non-R&D-intensive industries is less than that of the R&D-intensive industrial sectors. Moreover, R&D-intensive industries are found to contribute more to the employment of highly skilled professionals. On the other hand, our potential analyses show that non-R&D-intensive industries are of significant economic importance to Germany. This importance is evident based on a number of macroeconomic indicators: non-R&D-intensive industries are associated with strong indirect employment effects that also include qualified personnel. Overall, the analysis shows that the consideration of indirect macroeconomic effects is important to con-ducting an appropriate analysis of the role of non-R&D-intensive industries. Non-R&D-intensive companies have profound effects on upstream economic sectors through their spending on intermediate inputs (including business-related services and engineering). Policymakers should consider those linkages in determining an adequate selection of measures.

Keywords: Service Sector; Intermediate Input; Employment Effect; Intensive Industry; Indirect Production (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-319-09973-6_3

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DOI: 10.1007/978-3-319-09973-6_3

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