Does Europe perform too little corporate R&D? A comparison of EU and non-EU corporate R&D performance
AbstractThis paper examines whether there are differences in private R&D investment performance between the EU and the US and, if so, why. The study is based on data from the 2008 EU Industrial R&D Investment Scoreboard. The investigation assesses the effects of several very distinct factors that can determine the relative size of the overall R&D intensities of the two economies: these are the influence of sector composition (structural effect) vis-à-vis the intensity of R&D in each sector (intrinsic effect) and the company demographics. The paper finds that the lower overall corporate R&D intensity for the EU is the result of sector specialisation (structural effect) - the US has a stronger sectoral specialisation in the high R&D intensity (especially ICT-related) sectors than does the EU, and also has a much larger population of R&D investing firms within these sectors. Since aggregate R&D indicators are so closely dependent on industrial structures, many of the debates and claims about differences in comparative R&D performance are in effect about industrial structure rather than sector R&D performance. These have complex policy implications that are discussed in the closing section.
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Bibliographic InfoPaper provided by Institute of Prospective Technological Studies, Joint Research Centre in its series JRC-IPTS Working Papers on Corporate R&D and Innovation with number 2009-11.
Length: 33 pages
Date of creation: Jun 2009
Date of revision:
Research and Development intensity; EU-US R&D gap; size of firms;
Other versions of this item:
- Moncada-Paternò-Castello, Pietro & Ciupagea, Constantin & Smith, Keith & Tübke, Alexander & Tubbs, Mike, 2010. "Does Europe perform too little corporate R&D? A comparison of EU and non-EU corporate R&D performance," Research Policy, Elsevier, vol. 39(4), pages 523-536, May.
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-17 (All new papers)
- NEP-INO-2010-04-17 (Innovation)
- NEP-SBM-2010-04-17 (Small Business Management)
- NEP-TID-2010-04-17 (Technology & Industrial Dynamics)
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