Does Europe perform too little corporate R&D? A comparison of EU and non-EU corporate R&D performance
AbstractThis paper examines whether there are significant differences in private R&D investment performance between the EU and the US and, if so, why. The study is based on data from the 2008 EU Industrial R&D Investment Scoreboard. The investigation assesses the effects of three very distinct factors that can determine the relative size of the overall R&D intensities of the two economies: these are the influence of sector composition (structural effect) vis-à-vis the intensity of R&D in each sector (intrinsic effect) and company demographics. The paper finds that the lower overall corporate R&D intensity for the EU is the result of sector specialisation (structural effect) - the US has a stronger sectoral specialisation in the high R&D intensity (especially ICT-related) sectors than the EU does, and also has a much larger population of R&D investing firms within these sectors. Since aggregate R&D indicators are so closely dependent on industrial structures, many of the debates and claims about differences in comparative R&D performance are in effect about industrial structure rather than sectoral R&D performance. These have complex policy implications that are discussed in the closing section.
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Bibliographic InfoArticle provided by Elsevier in its journal Research Policy.
Volume (Year): 39 (2010)
Issue (Month): 4 (May)
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Web page: http://www.elsevier.com/locate/respol
Corporate R&D investment R&D indicators Decomposition of R&D intensity Firms' demographics EU R&D deficit;
Other versions of this item:
- Pietro Moncada-Paternò-Castello & Constantin Ciupagea & Keith Smith & Alexander Tübke & Mike Tubbs, 2009. "Does Europe perform too little corporate R&D? A comparison of EU and non-EU corporate R&D performance," JRC-IPTS Working Papers on Corporate R&D and Innovation 2009-11, Institute of Prospective Technological Studies, Joint Research Centre.
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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- Pietro Moncada-Paterno-Castello, 2011. "Companies' growth in the EU: What is research and innovation policy's role?," JRC-IPTS Working Papers on Corporate R&D and Innovation 2011-03, Institute of Prospective Technological Studies, Joint Research Centre.
- Gheorghe ZAMAN & Zizi Goschin, 2012. "Industrial R&D Investment In Eu: Recent Trends And Lessons For Romania," Romanian Journal of Economics, Institute of National Economy, vol. 34(1(43)), pages 68-83, June.
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LICOS Discussion Papers
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- d'Artis Kancs & Boriss Siliverstovs, 2012. "R&D and Non-Linear Productivity Growth of Heterogeneous Firms," JRC-IPTS Working Papers on Corporate R&D and Innovation 2012-06, Institute of Prospective Technological Studies, Joint Research Centre.
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- Barge-Gil, Andrés & López, Alberto, 2011. "R versus D: Estimating the differentiated effect of research and development on innovation results," MPRA Paper 29091, University Library of Munich, Germany.
- Coad, Alex & Segarra Blasco, Agustí, 1958- & Teruel, Mercedes, 2013. "Innovation and firm growth: Does firm age play a role?," Working Papers 2072/211886, Universitat Rovira i Virgili, Department of Economics.
- Pietro Moncada-Paterno-Castello & Peter Voigt & Marco Vivarelli, 2011. "Evolution of Globalised business R&D: Features, drivers, impacts," JRC-IPTS Working Papers on Corporate R&D and Innovation 2011-02, Institute of Prospective Technological Studies, Joint Research Centre.
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