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The competent demand pull hypothesis: which sectors do play a role?

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  • Cristiano Antonelli
  • Agnieszka Gehringer

Abstract

The paper investigates intersectoral linkages between manufacturing and services under the competent demand pull hypothesis. This hypothesis postulates that the demand pulls the innovative capacities of the suppliers only when and if they are accompanied by qualified knowledge interactions with creative customers. We empirically investigate this hypothesis based on the sector-level data of nineteen (manufacturing and service) sectors in fifteen EU countries over the period 1995–2007. We adopt the input–output framework to assess the strength of the inter-sectoral intermediate goods transactions. Our main findings confirm that demand actually pulls technological change only when it comes from competent customers able to implement effective user-producer knowledge interactions. The results stress the relevance of the transactions-cum-knowledge interactions between the knowledge intensive business service sectors and the manufacturing industries. Copyright Springer International Publishing Switzerland 2015

Suggested Citation

  • Cristiano Antonelli & Agnieszka Gehringer, 2015. "The competent demand pull hypothesis: which sectors do play a role?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(1), pages 97-134, April.
    • Handle: RePEc:spr:epolit:v:32:y:2015:i:1:p:97-134
    DOI: 10.1007/s40888-015-0003-1
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    Cited by:

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    3. Antonelli, Cristiano & David, Paul, 2015. "Knowledge, Institutions and Economic Policy: An Introduction," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201541, University of Turin.
    4. Gehringer, Agnieszka, 2016. "Knowledge externalities and sectoral interdependences: Evidence from an open economy perspective," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 240-249.
    5. Sofia Patsali, 2019. "Opening the black box of university-suppliers' co-invention: some field study evidence," Working Papers of BETA 2019-46, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    6. Cristiano Antonelli, 2016. "The bumpy ride to the knowledge economy," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(3), pages 337-344, September.

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    More about this item

    Keywords

    Micro-founded demand pull hypothesis; Inter-sector relations; Productivity growth; O30;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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