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European Productivity Gaps Is R&D the Solution?

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Author Info

  • Christoph Meister
  • Bart Verspagen

Abstract

This 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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File URL: http://www3.druid.dk/wp/20050006.pdf
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Bibliographic Info

Paper 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.

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Date of creation: 2005
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Handle: RePEc:aal:abbswp:05-06

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Web page: http://www.druid.dk/

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Keywords: Technology; Economic growth; R&D; Europe; United States;

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Cited by:
  1. Sabine Visser, 2007. "R&D in Worldscan," CPB Memorandum 189, CPB Netherlands Bureau for Economic Policy Analysis.
  2. Ernest Gnan & Jürgen Janger & Johann Scharler, 2004. "Determinants of Long-Term Growth in Austria – A Call for a National Growth Strategy," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 23–46.
  3. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 3(1), pages 1-72.
  4. Dumont M., 2006. "Technological performance of Belgium: is it really so bad?," Working Papers 2006024, University of Antwerp, Faculty of Applied Economics.

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