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

43 Pages Posted: 4 Aug 2004  

Franz C. Palm

University of Maastricht - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Wladimir Raymond

University of Maastricht

Pierre Mohnen

Maastricht University - UNU-MERIT

Sybrand Schim van der Loeff

University of Maastricht

Date Written: July 2004

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 hightech 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.

Keywords: generalized tobit, high-tech industry, homogeneity, innovation policy, likelihood ratio test, model of friction, sample selection, two-limit tobit model, TPP innovator

JEL Classification: C34, C51, O33, O38

Suggested Citation

Palm, Franz C. and Raymond, Wladimir and Mohnen, Pierre and van der Loeff, Sybrand Schim, An Empirically-Based Taxonomy of Dutch Manufacturing: Innovation Policy Implications (July 2004). CESifo Working Paper Series No. 1230. Available at SSRN: https://ssrn.com/abstract=572506

Franz C. Palm (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.cesifo.de

University of Maastricht - Department of Economics ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
+31-(0)43-3883833 (Phone)
+31-(0)43-3258535 (Fax)

Wladimir Raymond

University of Maastricht ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Pierre Mohnen

Maastricht University - UNU-MERIT ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
31-43-3884464 (Phone)
31-43-3884495 (Fax)

Sybrand Schim Van der Loeff

University of Maastricht ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

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