Sectoral Innovation Systems, Corporate Strategies, and Competitiveness of the German Economy in a Globalised World

Michael Rothgang

No 59, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: The EU Barcelona target assumes a close causal relationship between corporate R&D, the competitiveness of business firms and the economic performance of industrial countries. Testing this hypothesis, this paper contrasts innovation and production activities in four research-intensive manufacturing sectors (chemicals and pharmaceuticals, motor vehicles, machinery, and electrical engineering). Starting point are observed long-term changes in world- wide value added of the manufacturing sector. The empirical analysis is based on a unique survey of R&D-intensive business firms in Germany and 50 personal interviews in large industrial companies. The results show that there is no simple connection between R&D and competitiveness. Moreover, the likely consequences of promoting R&D differ substantially between industries.

Keywords: Sectoral innovation systems; corporate R&D Strategies; chemicals and pharmaceuticals; machinery; electrical engineering; motor vehicles; bazaar effect (search for similar items in EconPapers)
JEL-codes: L6 O23 R32 (search for similar items in EconPapers)
Date: 2008
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Journal Article: Sectoral Innovation Systems, Corporate Strategies, and Competitiveness of the German Economy in a Globalised World (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:59

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