NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Kate S. Whitefoot

Dept. of Engineering & Public Policy and Dept. of
Carnegie Mellon University
20001
Pittsburgh, PA 15213

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: Carnegie Mellon University

NBER Working Papers and Publications

January 2020The "Weighty" Manufacturing Sector: Transforming Raw Materials into Physical Goods
with Erica R. H. Fuchs, Christophe Combemale, Britta Glennon
in The Role of Innovation and Entrepreneurship in Economic Growth, Michael J. Andrews, Aaron Chatterji, Josh Lerner, and Scott Stern, editors
The manufacturing sector encompasses a diverse set of industries that are involved in the transformation of raw materials into physical goods. Over the last two decades, the U.S.’s manufacturing value added (MVA) has slightly grown, however, the U.S.’s percentage of global MVA has declined due to China’s exponential rise. The U.S.’s relatively high R&D spending on manufacturing (66% of industrial R&D) and comparatively low manufacturing value added (14%) can in part be explained by foreign multinationals’ globalization of manufacturing facilities in the last decade. As a whole, the manufacturing sector involves higher value added per capita employed, a greater proportion of the labor force with education at the high school level or below while having on average higher wages for that labor ...
 
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