Unraveling the Origins of EU Countries Productivity Growth - Evidence on R&D and Competition from Cross-Country Industry Analysis
AbstractOver the last two decades EU countries experienced diverging productivity growthdevelopments. By examining the sources of EU countries growth drivers on the sectorallevel, the paper takes a new look on the influence of innovations. While standard neoclassicalNon-ICT capital deepening turns out the major contributor to EU productivitygrowth, detail industry analysis reveals that growth in innovation stocks via increasedR&D in specialized and science-based industries spurred productivity growth as well.But those effects are only found for Nordic and Western Continental EU countries,while others are lacking such effects. Moreover, these specialized and science-basedindustries experienced strong innovation and productivity growth by decreases in competition,thereby favoring Schumpeterian growth arguments for highly dynamic sectors.
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Bibliographic InfoPaper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper Nr. 86.
Date of creation: 2010
Date of revision:
Productivity growth; market structure; competition; innovation; R&D; panel data; industry analysis;
Find related papers by JEL classification:
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
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