Strategic interactions in public R&D across European countries: A spatial econometric analysis
AbstractThe paper adds to the existing literature on the determinants of government spending in Research and Development (R&D) by considering the role of strategic interactions among countries as one of the possible competing explanations, within a spatial econometric framework. We account for several factors affecting national levels of public R&D spending, including (i) the international context â i.e. Lisbon strategy; (ii) country characteristics â level of private R&D, GDP, trade openness and the National System of Innovation; (iii) countriesâ similarities in relation to (a) trade and economic size and (b) sectoral specialization. The analysis is carried out on 14 European countries. First, we find that factors traditionally affecting the level of public R&D expenditure, such as the scale of the national economy, trade openness, sectoral specialization and private R&D, significantly influence the level of public R&D in European countries between 1994 and 2006. Interestingly, the introduction of the Lisbon strategy does not seem to have affected changes in the levels of public R&D spending. Second, by using different weight matrices, we confirm the existence of strategic interactions in relation to R&D spending among European countries with similar economic, international trade and sectoral structure characteristics, though not geographically close.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by SPRU - Science and Technology Policy Research, University of Sussex in its series SPRU Working Paper Series with number 2013-17.
Date of creation: Dec 2013
Date of revision:
Contact details of provider:
Postal: Jubilee Building G08, Falmer, Brighton, BN1 9SL
Phone: +44 (0)1273 686758
Fax: +44 (0)1273 685865
Web page: http://www.sussex.ac.uk/spru
More information through EDIRC
Public R&D expenditures; Strategic interactions in public spending; National Systems of Innovation; private R&D; EU countries; spatial dynamic panel data;
Other versions of this item:
- Hammadou, Hakim & Paty, Sonia & Savona, Maria, 2014. "Strategic interactions in public R&D across European countries: A spatial econometric analysis," Research Policy, Elsevier, vol. 43(7), pages 1217-1226.
- H5 - Public Economics - - National Government Expenditures and Related Policies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-29 (All new papers)
- NEP-CSE-2013-12-29 (Economics of Strategic Management)
- NEP-EUR-2013-12-29 (Microeconomic European Issues)
- NEP-GEO-2013-12-29 (Economic Geography)
- NEP-INO-2013-12-29 (Innovation)
- NEP-KNM-2013-12-29 (Knowledge Management & Knowledge Economy)
- NEP-URE-2013-12-29 (Urban & Real Estate Economics)
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Russell Eke).
If references are entirely missing, you can add them using this form.