A taxonomy of manufacturing and service firms in Luxembourg according to technological skills

Sarah El Joueidi

MPRA Paper from University Library of Munich, Germany

Abstract: This study uses data on Luxembourg manufacturing and service firms, sourced from CIS, to illustrate empirical methods of firms’ classification according to pattern and intensity of innovation and the use of technology. This topic is of relevance to Luxembourg, as to date no such specific classification exists for this country. Existing classifications are industry-based rather than firm-based which appears inappropriate given the heterogeneity within Luxembourgish industries. Moreover, they neglect the financial services, of primary importance to Luxembourg. Results show that cluster methods are well suited to classify firms for the case at hand. The analysis identifies four clusters exploiting information on the firms' innovation competencies, the technology used, and the human skills. Firms in the sample are classified into 4 groups, named respectively as i) high-technology, ii) medium-high-technology, iii) medium-lowtechnology, iv) low-technology. Characteristics of each group are discussed.

Keywords: Innovation; classification; taxonomy; innovation surveys; cluster analysis. (search for similar items in EconPapers)
JEL-codes: C1 C10 C8 O3 O30 O31 O38 (search for similar items in EconPapers)
Date: 2013-09-01
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ino, nep-knm and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:49532

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