Young leading innovators and the EU’s R&D intensity gap
AbstractEurope’s innovation gap relative to the US is often attributed to its industrial structure in which new firms do not play a significant role, especially in high-tech sectors. This view of a structural EU innovation deficit is popular in European innovation policy discussions, but has received little or no thorough empirical investigation. This paper aims to address this ‘evidence gap’. Using industrial R&D Scoreboard data from leading world innovators, we find that compared to the US, the EU has fewer young firms among its leading innovators. Using a decomposition analysis, we show that having fewer young firms accounts for about onethird of the EU-US differential in R&D intensity, while fifty five percent of the differential is due to the fact that young leading innovators in the EU are less R&D intensive than their US counterparts. Further analysis shows that this is almost entirely due to a different sectoral composition. We thus confirm that the EU-US private R&D gap is indeed mostly a structural issue.
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Bibliographic InfoPaper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/357486.
Length: 36 pages
Date of creation: Sep 2012
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dynamics of firms; age of firms; EU-US R&D gap;
Other versions of this item:
- Michele Cincera & Reinhilde Veugelers, 2013. "Young leading innovators and the EU's R&D intensity gap," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(2), pages 177-198, March.
- Michele Cincera & Reinhilde Veugelers, 2013. "Young Leading Innovators and the EU’s R&D intensity gap," ULB Institutional Repository 2013/147096, ULB -- Universite Libre de Bruxelles.
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