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

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  • Michael Rothgang

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 worldwide 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. COMMENT: Dirk Fornahl

Suggested Citation

  • Michael Rothgang, 2008. "Sectoral Innovation Systems, Corporate Strategies, and Competitiveness of the German Economy in a Globalised World," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 59(Supplemen), pages 97-136.
    • Handle: RePEc:aeq:aeqaeq:v59_y2008_is_q5_p97-136
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    References listed on IDEAS

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    1. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
    2. Granstrand, Ove & Hakanson, Lars & Sjolander, Soren, 1993. "Internationalization of R&D -- a survey of some recent research," Research Policy, Elsevier, vol. 22(5-6), pages 413-430, November.
    3. Unctad, 1996. "World Investment Report 1996," Foreign Trade Review, , vol. 31(3), pages 85-109, October.
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    More about this item

    Keywords

    Sectoral Innovation Systems; Corporate R&D Strategies; Chemicals and Pharmaceuticals; Machinery; Electrical Engineering; Motor Vehicles; Bazaar effect;
    All these keywords.

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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