Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18869
Authors: 
Raymond, Wladimir
Mohnen, Pierre A.
Palm, Franz
van der Loeff, Sybrand Schim
Year of Publication: 
2004
Series/Report no.: 
CESifo Working Paper 1230
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 twolimit 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.
Subjects: 
generalized tobit
high-tech industry
homogeneity
innovation policy
likelihood ratio test
model of friction
sample selection
JEL: 
O33
O38
C51
C34
Document Type: 
Working Paper

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