Innovation in Times of Crisis: The Uneven Effects of the Economic Downturn across Europe
AbstractThis article addresses the impact of the current economic downturn on innovation across Europe. Using micro and macro data we investigate to what extent some characteristics of a country affect the reaction of its firms in terms of innovation investment. It emerges that the effects of the economic downturn in terms of firms’ innovation investment are not the same across European countries. The competences and quality of the human resources, the specialization in the hi-technology sector together with the depth of the financial system seem to be the structural factors which are able to offset the effect of the economic downturn on innovation investments of firms across Europe. Finally, some considerations about policies during the crisis are discussed.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 22084.
Date of creation: Apr 2010
Date of revision:
innovation investment; business cycles; national innovation systems; European Innovation Policy; financial crisis;
Find related papers by JEL classification:
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-24 (All new papers)
- NEP-EUR-2010-04-24 (Microeconomic European Issues)
- NEP-ICT-2010-04-24 (Information & Communication Technologies)
- NEP-INO-2010-04-24 (Innovation)
- NEP-SBM-2010-04-24 (Small Business Management)
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