Template-type: ReDif-Paper 1.0 Author-Name: Raymond,Wladimir Author-Name: Mohnen,Pierre Author-Name: Palm,Franz Author-Name: Schim van der Loeff,Sybrand Author-workplace-name: METEOR Title: An Empirically-Based Taxonomy of Dutch Manufacturing: Innovation Policy Implications Abstract: The paper studies the degree of homogeneity of innovative behavior inorder to determine empirically an industry classi¯cation of Dutch manu-facturing that can be used for policy purposes. We use a two-limit tobitmodel with sample selection, which explains the decisions by business en-terprises to innovate and the impact these decisions have on the share ofinnovative sales. The model is estimated for eleven industries based on theDutch Standard Industrial Classi¯cation (SBI 1993). A likelihood ratiotest (LR) is then performed to test for equality of the parameters acrossindustries. We ¯nd that Dutch manufacturing consists of three groups ofindustries in terms of innovative behavior, a high-tech group, a low-techgroup and the industry of wood, where ¯rms seem to have a rather di®er-ent innovative behavior from the remaining industries. The same patternshows up in the three Dutch Community Innovation Surveys. Keywords: none; Series: Research Memoranda Creation-Date: 2004 Number: 024 File-URL: http://digitalarchive.maastrichtuniversity.nl/fedora/objects/guid:cc40b45f-bf97-4a09-9536-db131d6fa888/datastreams/ASSET1/content File-Format: application/pdf File-Size: 243071 Handle: RePEc:unm:umamet:2004024