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

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  • El Joueidi, Sarah

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.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 49532.

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Date of creation: 01 Sep 2013
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Handle: RePEc:pra:mprapa:49532

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Keywords: Innovation; classification; taxonomy; innovation surveys; cluster analysis.;

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  1. Griffith, Rachel & Harrison, Rupert & Simpson, Helen, 2006. "Product Market Reform and Innovation in the EU," CEPR Discussion Papers 5849, C.E.P.R. Discussion Papers.
  2. Philippe Aghion & Nicholas Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2002. "Competition and innovation: an inverted U relationship," IFS Working Papers, Institute for Fiscal Studies W02/04, Institute for Fiscal Studies.
  3. John Bound & Clint Cummins & Zvi Griliches & Bronwyn H. Hall & Adam B. Jaffe, 1982. "Who Does R&D and Who Patents?," NBER Working Papers 0908, National Bureau of Economic Research, Inc.
    • John Bound & Clint Cummins & Zvi Griliches & Bronwyn H. Hall & Adam B. Jaffe, 1984. "Who Does R&D and Who Patents?," NBER Chapters, in: R & D, Patents, and Productivity, pages 21-54 National Bureau of Economic Research, Inc.
  4. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 98(5), pages S71-102, October.
  5. Chiara Peroni & Ivete Ferreira, 2012. "Competition and Innovation in Luxembourg," Journal of Industry, Competition and Trade, Springer, vol. 12(1), pages 93-117, March.
  6. Luis A. Rivera-Batiz & Paul M. Romer, 1991. "International Trade with Endogenous Technological Change," NBER Working Papers 3594, National Bureau of Economic Research, Inc.
  7. Geroski, P. A. & Van Reenen, J. & Walters, C. F., 1997. "How persistently do firms innovate?," Research Policy, Elsevier, vol. 26(1), pages 33-48, March.
  8. Malerba, Franco & Orsenigo, Luigi, 1999. "Technological entry, exit and survival: an empirical analysis of patent data," Research Policy, Elsevier, vol. 28(6), pages 643-660, August.
  9. Michael Peneder, 2003. "Industry Classifications: Aim, Scope and Techniques," Journal of Industry, Competition and Trade, Springer, vol. 3(1), pages 109-129, March.
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