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Technological innovation and economic performance in the United Kingdom

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  • Nickell, S. J.
  • Van Reenen, John

Abstract

Over the period since 1970, Britain has improved its relative productivity performance, but there remains a significant gap in market sector productivity between Britain and both Continental Europe and the United States. Much of the gap between Britain and Continental Europe is due to lower levels of capital intensity and skill. However, even taking these into account, there remains a significant gap between Britain and the United States. This reflects not just a weakness in high tech areas but an inability to absorb best-practice techniques and methods in wide swathes of the market sector. Part of this is due to a weakness in technological innovation despite a high quality science base. This includes comparatively low and falling levels of R&D and patenting as well as a distinct lag in the diffusion of innovations relative to other countries.

Suggested Citation

  • Nickell, S. J. & Van Reenen, John, 2001. "Technological innovation and economic performance in the United Kingdom," LSE Research Online Documents on Economics 783, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:783
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    File URL: http://eprints.lse.ac.uk/783/
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    References listed on IDEAS

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    Cited by:

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    2. Christian Ketels, 2006. "Michael Porter’s Competitiveness Framework—Recent Learnings and New Research Priorities," Journal of Industry, Competition and Trade, Springer, vol. 6(2), pages 115-136, June.

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    More about this item

    Keywords

    Innovation; technology; productivity growth.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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