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Nature of the European technology gap: creative destruction or industrial policy?

Author

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  • David Encaoua

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

This chapter tries to identify the sources and the nature of the European technology gap relative to its competitors, in particular the US. In the first part, taxonomies based on disaggregated sectoral data allow an assessment of the strengths and weaknesses of the European industries according first to the intensity of their production or their usage of ICT and second to Pavitt's classification relative to the nature of the innovative regimes. The second part examines how the characteristics of industrial dynamics, at the heart of the creative destruction process, differ on the two sides of the Atlantic. Comparisons are made by using longitudinal firm-level data. Finally, in the third part of the chapter structural policy questions are examined.

Suggested Citation

  • David Encaoua, 2009. "Nature of the European technology gap: creative destruction or industrial policy?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00415824, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00415824
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    Cited by:

    1. Nicholas Crafts, 2017. "Is Slow Economic Growth the ‘New Normal’ for Europe?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(3), pages 283-297, September.
    2. Mina, Andrea & Minin, Alberto Di & Martelli, Irene & Testa, Giuseppina & Santoleri, Pietro, 2021. "Public funding of innovation: Exploring applications and allocations of the European SME Instrument," Research Policy, Elsevier, vol. 50(1).
    3. Pietro Santoleri & Andrea Mina & Alberto Di Minin & Irene Martelli, 2020. "The causal effects of R&D grants: evidence from a regression discontinuity," LEM Papers Series 2020/18, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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