Appendix A Industry categorization

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Appendix A

Industry categorization

no industry

R&D

δ

60-industry

manufacturing

1 agriculture, forestry and fishing

1,2,3

2 mining and quarrying

4 3 food products

x

23,5%

5 4 textiles, clothing and leather

6,7,8

5 wood products

9 6 paper, printing and publishing

10,11

7 petroleum and coal products

12 8 chemical products

x

18%

13 9 rubber and plastics

x

23,5%

14 10 non-metallic mineral products

x

23,5%

15 11 metal products

x

26%

16,17

12 machinery

x

26%

18 13 electrical and electronic equipm. & instr.

x

29%

19,20…26

14 transport equipment

27,28..30

15 furniture and misc. manufacturing

31 services

16 electricity, gas and water

32 17 construction

33 18 wholesale trade

34,35

19 retail trade

36 20 hotels and restaurants

37 21 transport and storage

38, 39…41

22 communications

42 23 financial intermediation

43,44,45

24 business services

47, 48…51

25 social and personal services

55,56,57

26 non-market services

52,53,54

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1

Appendix B

Schooling trajectories

Country

Educational Trajectory

US

A

Bachelor degrees and above

B

Associate degrees and above

C

Some college, no degree

D

High school graduate

E

Did not complete high school

Netherlands

A

Master degree and above

B

HBO

C

HAVO/VWO

D

MAVO

E

MBO

F

LBO/VBO

G

Primary education or below

France

A

Bachelor degrees and above

B

Baccalaureate plus 2 years college

C

Baccalaureate

D

Vocational (CAP, BEP or other of the same level)

E

General Educational (BEPC)

F

No formal qualifications (without diploma or CEP)

UK

A

First degree and above

B

Other NVQ4

C

NVQ3

D

NVQ2 and NVQ1

E

No formal qualifications

Germany

A

Higher Education

B

Vocational degree

C

No degree

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6

Appendix G

Bivariate Correlations

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7

Appendix H

KPSS Stationarity Tests

Summary non-stationary variables (5%)

United States (US)

Sector

RD

ICT

HC1

HC2

HC3

RD

ICT

HC1

HC2

HC3

3 us,f

uk

nl

0,556

0,361

0,120

0,084

0,207

8 all

n

0,746

0,639

0,077

0,174

0,081

9 n

us, n

0,089

0,286

0,084

0,089

0,129

10 uk

0,361

0,431

0,237

0,179

0,289

11 f, g

0,145

0,144

0,267

0,196

0,289

12 f, g

uk

0,166

0,395

0,067

0,165

0,311

13 f, g

0,294

0,214

0,159

0,145

0,121

16 us, uk

g

0,634

0,448

0,201

0,482

17 uk

n

0,427

0,105

0,201

0,117

18 0,195

0,171

0,084

0,098

19 us, uk

f

0,530

0,230

0,075

0,123

20 f

g

0,224

0,236

0,270

0,274

21 g

0,309

0,096

0,155

0,278

22 us, g

g

0,465

0,079

0,252

0,149

23 uk

0,164

0,428

0,166

0,164

24 uk

g

0,277

0,114

0,156

0,157

25 n

0,450

0,153

0,212

0,120

26 g

f

0,313

0,096

0,098

0,277

Netherlands (N)

France (F)

Sector

RD

ICT

HC1

HC2

HC3

RD

ICT

HC1

HC2

HC3

3 0,080

0,455

0,096

0,368

0,578

0,406

0,372

0,066

0,103

0,124

8 0,656

0,673

0,312

0,209

0,135

0,827

0,159

0,067

0,073

0,405

9 0,464

0,542

0,254

0,192

0,334

0,089

0,161

0,113

0,213

0,104

10 0,136

0,228

0,160

0,213

0,225

0,177

0,136

0,100

0,144

0,112

11 0,372

0,275

0,153

0,095

0,184

0,513

0,189

0,063

0,347

0,133

12 0,297

0,168

0,139

0,089

0,175

0,469

0,149

0,087

0,205

0,104

13 0,320

0,257

0,178

0,370

0,238

0,788

0,301

0,126

0,430

0,079

16 0,157

0,169

0,652

0,071

0,161

0,078

0,112

0,153

17 0,211

0,450

0,390

0,498

0,162

0,101

0,230

0,077

18 0,200

0,070

0,149

0,326

0,195

0,097

0,151

0,085

19 0,199

0,164

0,156

0,079

0,284

0,072

0,213

0,495

20 0,173

0,212

0,226

0,193

0,493

0,154

0,115

0,128

21 0,219

0,132

0,108

0,313

0,176

0,062

0,152

0,102

22 0,234

0,135

0,080

0,247

0,193

0,103

0,084

0,138

23 0,196

0,082

0,191

0,091

0,144

0,117

0,111

0,295

24 0,191

0,166

0,085

0,297

0,281

0,284

0,189

0,256

25 0,134

0,245

0,475

0,290

0,156

0,210

0,406

0,128

26 0,186

0,178

0,240

0,183

0,133

0,123

0,104

0,567

Germany (G)

United Kingdom (UK)

Sector

RD

ICT

HC1

HC2

HC3

RD

ICT

HC1

HC2

HC3

3 0,468

0,182

0,202

0,096

0,301

0,113

0,631

0,624

0,173

0,111

8 0,647

0,265

0,532

0,448

0,219

0,511

0,096

0,254

0,073

0,270

9 0,413

0,161

0,384

0,280

0,074

0,241

0,278

0,335

0,113

0,092

10 0,430

0,152

0,173

0,097

0,110

0,244

0,625

0,167

0,078

0,085

11 0,653

0,087

0,278

0,174

0,082

0,244

0,112

0,401

0,167

0,093

12 0,548

0,434

0,286

0,175

0,117

0,161

0,071

0,518

0,101

0,141

13 0,645

0,152

0,282

0,242

0,136

0,351

0,138

0,223

0,096

0,183

16 0,138

0,637

0,715

0,456

0,564

0,054

0,413

0,372

17 0,291

0,169

0,184

0,232

0,535

0,139

0,086

0,156

18 0,460

0,202

0,120

0,206

0,238

0,285

0,068

0,142

19 0,133

0,327

0,237

0,404

0,647

0,247

0,087

0,188

20 0,319

0,619

0,145

0,294

0,341

0,214

0,120

0,165

21 0,561

0,175

0,127

0,103

0,368

0,376

0,155

0,145

22 0,582

0,354

0,505

0,095

0,229

0,259

0,068

0,182

23 0,148

0,450

0,279

0,168

0,652

0,191

0,338

0,249

24 0,202

0,381

0,358

0,632

0,665

0,221

0,080

0,074

25 0,220

0,293

0,437

0,146

0,209

0,243

0,079

0,176

26 0,143

0,279

0,609

0,204

0,398

0,256

0,146

0,226

note1: KPSS tests a null hypothesis of stationarity

note2: critical values are 0,347 (10%), 0,463 (5%), 0,739 (1%)

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8

Appendix I

Regression results

General model

Manufacturing

Services

variable

coef

sign

variable

coef

sign

ICT

-0,047

0,034

HC1

-0,032

0,003

HC1

-0,031

0,033

R-sq within

0,173

R-sq within

0,223

R-sq

between

0,007

R-sq between

0,062

R-sq overall

0,168

R-sq overall

0,216

lags of dep

2 lags of dep

2 prob>stat

prob>stat

all vars = 0

F-test

15,20

0,000

all vars = 0

F-test

33,12

0,000

Wooldridge

F-test

0,044

0,835

Wooldridge

F-test

1,380

0,245

Hettest

Chi2

703,82

0,000

Hettest

Chi2

13068

0,000

Swilk

W

0,990

0,000

Swilk

W

0,967

0,000

Country-specific model

Manufacturing

Services

country

variable

coef

sign

country

variable

coef

sign

France

HC1

-0,111

0,087

France

HC1

-0,151

0,005

Germany

HC1

-0,180

0,007

Netherlands

HC1

-0,202

0,001

Netherlands

HC3

0,083

0,008

UK

HC1

-0,161

0,020

US

ICT

-0,085

0,036

US

ICT

-0,038

0,057

HC3

0,206

0,044

HC1

-0,123

0,008

R-sq within

0,235

R-sq within

0,237

R-sq

between

0,170

R-sq between

0,308

R-sq overall

0,233

R-sq overall

0,237

lags of dep

2 lags of dep

2 prob>stat

prob>stat

all vars = 0

F-test

4,60

0,000

all vars = 0

F-test

9,02

0,000

Wooldridge

F-test

0,081

0,786

Wooldridge

F-test

1,326

0,277

Hettest

Chi2

10,750

0,150

Hettest

Chi2

505,760

0,000

Swilk

W

0,992

0,001

Swilk

W

0,967

0,000

note1: Wooldridge test for serial correlation tests a null hypothesis of no serial correlation

note2: the modified Wald statistic for groupwise heteroskedasticity tests a null hypothesis of

homoskedasticity