A Classification of Dutch Manufacturing based on a Model of Innovation |
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Authors: | Wladimir Raymond Pierre Mohnen Franz Palm Sybrand Schim van der Loeff |
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Institution: | (1) University of Maastricht, Netherlands;(2) University of Maastricht, MERIT and CIRANO, Netherlands;(3) University of Maastricht and CESifo fellow Vakgroep Kwantitatieve Economie, Postbus 616, 6200 MD Maastricht, Netherlands |
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Abstract: | Summary 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. Defining homogeneity in terms of an economic model distinguishes
our classification from existing taxonomies such as those of the OECD, Pavitt and the various classifications based on a principal
components analysis. 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 (LR) test 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. The same pattern shows up in the three
Dutch Community Innovation Surveys.
The empirical part of this study has been carried out at the Centre for Research of Economic Microdata at Statistics Netherlands.
The authors wish to thank Statistics Netherlands, and in particular Bert Diederen, for helping us in accessing and using the
Micronoom data set. The views expressed in this paper are solely those of the authors. The authors also wish to thank Fran?ois
Laisney, Patrick Waelbroek and participants at presentations in Maastricht, Strasbourg, Leuven and Lille for their helpful
comments. The first author acknowledges financial support from METEOR. |
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Keywords: | CIS industry classification innovation policy two-limit tobit model |
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