European Productivity Gaps Is R&D the Solution?
AbstractThis paper investigates the potential impact of increased business R&D efforts in Europe on the total factor productivity gap between European and U.S. industry. The paper addresses Europe’s ambition, expressed at the 2000 Lisbon Summit to become “the most competitive and dynamic knowledge-based economy in the world”, and the 3% R&D intensity target for Europe formulated at the 2002 Barcelona Summit. Based on existing empirical models from the literature on productivity and R&D expenditures, we provide projections on the expected productivity impacts of increased R&D in manufacturing industries. The results suggest that raising European R&D is not a complete solution to the European productivity backlog relative to the U.S. We also find that the most dramatic impacts may be expected from raising R&D in so-called low-tech sectors.
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Bibliographic InfoPaper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 05-06.
Date of creation: 2005
Date of revision:
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Web page: http://www.druid.dk/
Technology; Economic growth; R&D; Europe; United States;
Other versions of this item:
- Meister,Christoph & Verspagen,Bart, 2004. "European productivity gaps: Is R&D the solution?," Research Memoranda 005, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology.
- Meister, C. & Verspagen, B., 2004. "European Productivity Gaps: Is R&D the solution?," Eindhoven Center for Innovation Studies (ECIS) working paper series 04.03, Eindhoven Center for Innovation Studies (ECIS).
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-05-14 (All new papers)
- NEP-EEC-2005-05-14 (European Economics)
- NEP-EFF-2005-05-14 (Efficiency & Productivity)
- NEP-INO-2005-05-14 (Innovation)
- NEP-TID-2005-05-14 (Technology & Industrial Dynamics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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