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Disentangling the R+D shortfall of the EU vis-a-vis the US

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  • Hugo Erken

    ()
    (Ministry of Economic Affairs and Erasmus University)

  • Frank van Es

    (CPB Netherlands Bureau for Economics Policy Analysis)

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    Abstract

    This paper investigates the causes of the shortfall in private R+D expenditure of the EU compared to the US. It shows that differences in the structure of the two economies play only a minor role in explaining the R+D gap. Instead, the European R+D shortfall is mainly caused by a negative intrinsic effect, meaning that companies within European industries spend less on R+D than their US peers in the same sectors. In addition, this negative intrinsic effect is mainly due to institutional differences between the US and the EU15. Government funding of R+D and the internationalization of R+D provide significant explanation as well.

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    File URL: http://zs.thulb.uni-jena.de/receive/jportal_jparticle_00084363
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    Bibliographic Info

    Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2007-107.

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    Date of creation: 20 Dec 2007
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    Handle: RePEc:jrp:jrpwrp:2007-107

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    Related research

    Keywords: private R+D intensity; internationalization of R+D; economic structure; sector-composition effect; intrinsic effect;

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