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Does manufacturing stir up innovation?

Author

Listed:
  • Alex Coad

    (CENTRUM Católica Graduate Business School, Pontificia Universidad Católica del Perú, Lima, Perú)

  • Antonio Vezzani

    (European Commission - JRC)

Abstract

Because of its positive contribution to employment and economic growth, the EU has set a manufacturing target of 20%. This could also boost R&D, productivity and exporting. Our analyses do not find empirical evidence that a large manufacturing sector has a direct influence on exporting activity or productivity growth. We find a positive association between manufacturing and R&D investment. The EU manufacturing strategy could help reaching the 3% R&D intensity target. However, the link between manufacturing and R&D depends on the industrial structure of a country. Support to new high-tech sectors should be coupled with actions to encourage technological upgrade in existing ones.

Suggested Citation

  • Alex Coad & Antonio Vezzani, 2017. "Does manufacturing stir up innovation?," JRC Research Reports JRC108213, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc108213
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC108213
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    Cited by:

    1. Pietro Moncada-Paterno-Castello & Alex Coad & Antonio Vezzani, 2018. "For a transformative Industry & Innovation Strategy," JRC Research Reports JRC110888, Joint Research Centre.

    More about this item

    Keywords

    Manufacturing; R&D; exporting; productivity; industrial policy; industrial renaissance;
    All these keywords.

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