Manufacturing the future: is the manufacturing sector a driver of R&D, exports and productivity growth?

Arbeitspapier

Many industrialized countries in Europe and North America have experienced a steady decline in the manufacturing sector over the last few decades. Amid growing concerns that outsourcing and offshoring have destabilized European economies, policymakers have suggested that a large manufacturing sector can: i) boost R&D, ii) encourage exporting, and iii) raise productivity. We examine these claims. Non-parametric plots and regressions show a robust positive association between the manufacturing sector and Business R&D expenditures (BERD), while the relationship between manufacturing and exports or productivity is more elusive. Finally, we explore whether a manufacturing sector target of 20% of value-added will help reach a BERD target of 3% of GDP.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: JRC Working Papers on Corporate R&D and Innovation ; No. 06/2017

Classification and Topics

• Classification: Wirtschaft ; Industrialization; Manufacturing and Service Industries; Choice of Technology ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
• Subject: Manufacturing sector ; R&D ; exporting ; productivity ; industrial policy ; industrial renaissance

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Coad, Alexander ; Vezzani, Antonio
• Event: Veröffentlichung
• (who): European Commission, Joint Research Centre (JRC)
• (where): Seville
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/202175
• Last update: 10.03.2025, 11:42 AM CET