Disentangling the R+D shortfall of the EU vis-a-vis the US
AbstractThis 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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Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2007-107.
Date of creation: 20 Dec 2007
Date of revision:
private R+D intensity; internationalization of R+D; economic structure; sector-composition effect; intrinsic effect;
Find related papers by JEL classification:
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-01-19 (All new papers)
- NEP-EEC-2008-01-19 (European Economics)
- NEP-INO-2008-01-19 (Innovation)
- NEP-IPR-2008-01-19 (Intellectual Property Rights)
- NEP-TID-2008-01-19 (Technology & Industrial Dynamics)
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