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An Empirically-Based Taxonomy of Dutch Manufacturing: Innovation Policy Implications

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  • Wladimir Raymond
  • Pierre Mohnen

    ()

  • Franz Palm
  • Sybrand Schim van der Loeff

Abstract

The paper studies the degree of homogeneity of innovative behavior in order to determine empirically an industry classification of Dutch manufacturing that can be used for policy purposes. We use a two-limit tobit model with sample selection, which explains the decisions by business enterprises to innovate and the impact these decisions have on the share of innovative sales. The model is estimated for eleven industries based on the Dutch Standard Industrial Classification (SBI 1993). A likelihood ratio test (LR) is then performed to test for equality of the parameters across industries. We find that Dutch manufacturing consists of three groups of industries in terms of innovative behavior, a high-tech group, a low-tech group and the industry of wood, where firms seem to have a rather different innovative behavior from the remaining industries. The same pattern shows up in the three Dutch Community Innovation Surveys. Dans cette étude, nous examinons empiriquement dans quelle mesure le comportement innovateur est homogène dans les entreprises néerlandaises, afin d'établir une classification industrielle du secteur manufacturier des Pays-Bas, qui puisse servir à mettre en place une politique d'innovation. Nous utilisons un modèle tobit à double censure qui explique à la fois la décision d'innover et l'intensité d'innovation des firmes innovantes. Le modèle est estimé pour onze industries définies suivant la classification industrielle type néerlandaise (SBI 1993). À partir d'un test de rapport de vraisemblance sur l'égalité des paramètres, nous arrivons à cerner trois groupes d'industries qui se ressemblent dans leur comportement innovateur: un groupe high-tech, un groupe low-tech et les entreprises du secteur du bois. La même classification ressort des enquêtes communautaires d'innovation CIS 2, CIS 2.5 et CIS 3 des Pays-Bas.

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Bibliographic Info

Paper provided by CIRANO in its series CIRANO Working Papers with number 2004s-36.

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Date of creation: 01 Jun 2004
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Handle: RePEc:cir:cirwor:2004s-36

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Keywords: generalized tobit; high-tech industry; homogeneity; innovation policy; likelihood ratio test; model of friction; sample selection; two-limit tobit model; TPP innovator; enquête communautaire d'innovation; classification industrielle; politique d'innovation; modèle tobit à double censure;

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  1. Sabourin, David & Baldwin, John R. & Hanel, Peter, 2000. "Determinants of Innovative Activity in Canadian Manufacturing Firms: The Role of Intellectual Property Rights," Analytical Studies Branch Research Paper Series 2000122e, Statistics Canada, Analytical Studies Branch.
  2. Amemiya, Takeshi, 1978. "The Estimation of a Simultaneous Equation Generalized Probit Model," Econometrica, Econometric Society, vol. 46(5), pages 1193-1205, September.
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Cited by:
  1. Martin Woerter, 2009. "Industry diversity and its impact on the innovation performance of firms," Journal of Evolutionary Economics, Springer, vol. 19(5), pages 675-700, October.
  2. Diederen,Bert & Mohnen,Pierre & Palm ,Franz & Raymond ,Wladimir & Schim van der Loeff,Sybrand, 2005. "Innovation in Enterprise Clusters: Evidence from Dutch Manufacturing," Research Memorandum 021, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  3. Jacques Mairesse & Pierre Mohnen, 2010. "Using Innovation Surveys for Econometric Analysis," CIRANO Working Papers 2010s-15, CIRANO.
  4. Wladimir Raymond & Pierre Mohnen & Franz Palm & Sybrand Loeff, 2006. "A Classification of Dutch Manufacturing based on a Model of Innovation," De Economist, Springer, vol. 154(1), pages 85-105, 03.
  5. de Jong, Jeroen P.J. & Marsili, Orietta, 2006. "The fruit flies of innovations: A taxonomy of innovative small firms," Research Policy, Elsevier, vol. 35(2), pages 213-229, March.
  6. Woerter, Martin & Roper, Stephen, 2010. "Openness and innovation--Home and export demand effects on manufacturing innovation: Panel data evidence for Ireland and Switzerland," Research Policy, Elsevier, vol. 39(1), pages 155-164, February.
  7. Spyros Arvanitis & Juliette von Arx, 2004. "Bestimmungsfaktoren der Innovationstätigkeit und deren Einfluss auf Arbeitsproduktivität, Beschäftigung und Qualifikationsstruktur : Eine mikroökonometrische Untersuchung anhand von Paneldaten 198," KOF Working papers 04-91, KOF Swiss Economic Institute, ETH Zurich.

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