New insights on EU-US comparison of corporate R&D
AbstractPolicy-makers have become increasingly aware that corporate R&D and innovation are the main drivers of an economy's competitiveness and growth. The widespread adoption of R&D targets has led researchers and analysts to pursue a deeper understanding of corporate R&D investment trends, drivers and impacts. This paper focuses on the main differences between the EU and the US in corporate R&D performance, especially in the following three main aspects: (i) dynamics of the economic structures and the cause of the R&D intensity gap; (ii) R&D performance and company demographics and (iii) financial availability and corporate R&D investment. Based on the literature review, the paper concludes that (a) there have been more dynamic changes in the structure of the US economy than in the EU in the last two decades which in turn have favoured the growth in the US of higher R&D-intensity sectors to a larger extent than in the EU; (b) younger and smaller-sized US companies are more present - and show a higher capacity to grow - in high-R&D intensity sectors than similar companies in the EU; (c) financial markets, especially in the last decade, have hampered EU firms' R&D investment more than that of US firms. The paper concludes that policy measures to stimulate corporate R&D and innovation activities should be expressly conceived according to the typology of companies, sectors and countries.
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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 2010-01.
Length: 19 pages
Date of creation: Mar 2010
Date of revision:
Corporate R&D; EU-US comparison; industrial dynamics; technological change; innovation process; government policy;
Find related papers by JEL classification:
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-04 (All new papers)
- NEP-CSE-2010-06-04 (Economics of Strategic Management)
- NEP-EUR-2010-06-04 (Microeconomic European Issues)
- NEP-INO-2010-06-04 (Innovation)
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- Pietro Moncada-Patern�-Castello & Marco Vivarelli & Peter Voigt, 2011.
"Drivers and impacts in the globalization of corporate R&D: an introduction based on the European experience,"
Industrial and Corporate Change,
Oxford University Press, vol. 20(2), pages 585-603, April.
- Moncada-Paternò-Castello, Pietro & Vivarelli, Marco & Voigt, Peter, 2011. "Drivers and Impacts in the Globalization of Corporate R&D: An Introduction Based on the European Experience," IZA Discussion Papers 5582, Institute for the Study of Labor (IZA).
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