Abstract
This book chapter focuses on non-R&D-intensive industry sectors and analyses their economic importance for Germany. Therefore we compare non-R&D-intensive industry sectors with R&D-intensive-industry-sectors and service sectors regarding R&D activities, domestic value added and import intensity, production, employment and skills. In order to not only include direct effects for these indicators we also analyze indirect effects via input-output (I/O) analysis by simulating the potential effect additional 1 billion euros demand impulse in the various sectors. On the one hand, our results show that the dynamics of non-R&D-intensive industries is less than that of the R&D-intensive industrial sectors. Moreover, R&D-intensive industries are found to contribute more to the employment of highly skilled professionals. On the other hand, our potential analyses show that non-R&D-intensive industries are of significant economic importance to Germany. This importance is evident based on a number of macroeconomic indicators: non-R&D-intensive industries are associated with strong indirect employment effects that also include qualified personnel. Overall, the analysis shows that the consideration of indirect macroeconomic effects is important to con-ducting an appropriate analysis of the role of non-R&D-intensive industries. Non-R&D-intensive companies have profound effects on upstream economic sectors through their spending on intermediate inputs (including business-related services and engineering). Policymakers should consider those linkages in determining an adequate selection of measures.
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Notes
- 1.
All results, including more in-depth analyses for individual sectors as well as additional indicators, can be found in the following: Som, O.; Kinkel, S.; Kirner, E.; Buschak, D.; Frietsch, R.; Jäger, A.; Neuhäusler, P.; Nusser, M.; Wydra, S. (2010): Zukunftspotenziale und Strategien nichtforschungsintensiver Industrien in Deutschland – Auswirkungen auf Wettbewerbsfähigkeit und Beschäftigung. Büro für Technikfolgen-Abschätzung beim Deutschen Bundestag. Berlin, Arbeitsbericht Nr. 140, Chapter 2.
- 2.
However, as the results in Figure 3.4 show, a small indirect effect on employment in terms of low multipliers is not synonymous with the low importance of the sector to the overall economy. In the labour-intensive service sectors, the total employment effects are typically high because of the (very) high direct employment. The latter also implies that the indirect employment multipliers are low.
References
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Annex 3.1. Sectoral aggregation of German input-output tables for 2006, sorted by R&D intensity
Annex 3.1. Sectoral aggregation of German input-output tables for 2006, sorted by R&D intensity
Non-R&D-intensive industry sectors |
9 Food (inc. feed) |
10 Beverages |
11 Tobacco |
12 Textiles |
13 Wearing apparel, dressing and dyeing fur |
14 Leather |
15 Wood and wood products |
16 Pulp, paper and paper products |
17 Articles of paper and paperboard |
18 Publishing |
19 Printing (incl. reproduction of recorded media) |
20 Coke and refined petroleum products |
23 Rubber |
24 Plastics |
25 Glass |
26 Ceramics, processed stone and clay |
27 Basic iron, steel and tube |
28 Precious and non-ferrous metals |
29 Casting of metals |
30 Fabricated metal products |
38 Furniture, jewelery, musical instruments, sports articles and toys |
39 Recycling |
R&D-intensive industry sectors |
21 Pharmaceuticals |
22 Chemicals |
31 Machinery and equipment |
32 Office machinery and apparatuses, data processing equipment |
33 Electrical machinery and apparatus |
34 Radio, television and communication equipment and apparatus |
35 Medical, precision and optical instruments, watches and clocks |
36 Motor vehicles, trailers and semi-trailers |
37 Other transport equipment |
Service sectors |
45 Sale, maintenance and repair of motor vehicles and motorcycles |
46 Wholesale trade and commission trade |
47 Retail trade |
48 Hotels and restaurants |
49 Transport via railways |
50 Transport via pipelines and other transport |
51 Water transport |
52 Air transport |
53 Supporting and auxiliary transport activities |
54 Post and telecommunications |
55 Financial intermediation |
56 Insurance and pension funding |
57 Activities auxiliary to financial intermediation |
58 Real estate activities |
59 Renting of machinery and equipment without operator |
60 Computer and related activities |
61 Research and development |
62 Other business activities |
63 Public administration and defence |
64 Compulsory social security activities |
65 Education |
66 Health and social work |
67 Sewage and refuse disposal, sanitation and similar activities |
68 Activities of membership organisations |
69 Recreational, cultural and sporting activities |
70 Other service activities |
71 Activities of households |
Other sectors |
1 Agriculture and hunting |
2 Forestry and logging (incl. related services) |
3 Fishing, operation of fish hatcheries and fish farms |
4 Extraction of coal and lignite |
5 Extraction of crude petroleum and natural gas (incl. related services) |
6 Extraction of uranium and thorium ores |
7 Extraction of metal ores |
8 Extraction of stone, sand, clay and other mining |
40 Production and distribution of electricity and long-distance heating |
41 Extraction of gas, distribution of gaseous fuels through mains |
42 Collection, purification and distribution of water |
43 Construction: Site preparation, complete constructions and parts thereof |
44 Construction: Building installations and completion |
Source: Fraunhofer ISI (Based on I/O tables from the Federal Statistical Office of Germany)
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Wydra, S., Nusser, M. (2015). Economic Relevance and the Future Potential of Non-R&D-Intensive Industries. In: Som, O., Kirner, E. (eds) Low-tech Innovation. Springer, Cham. https://doi.org/10.1007/978-3-319-09973-6_3
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DOI: https://doi.org/10.1007/978-3-319-09973-6_3
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