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European technology policy

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  • Jonathan Eaton
  • Eva Gutierrez
  • Samuel Kortum

Abstract

"European countries do less research than Japan and the United States. But their lower level of research effort has more to do with the smaller markets facing European inventors than with lower research productivity. Europe has substantial research potential, in that increasing research effort in most European countries generates bigger income benefits there than increasing research effort in the United States and Japan by equivalent amounts. Research subsidies, enhanced patent protection, support for public research, higher educational achievement and increased integration are alternative routes towards exploiting this potential. These policies increase productivity not only in Europe, but also elsewhere. One problem with implementing such policies at the national level is the potential for free riding. A second possible problem with policies to promote research concerns their distributional consequences. While all countries within the European Union would benefit from increased research output, the countries that are already best at doing research, which tend to be the richer members, do best. The benefits of policies that facilitate the adoption of innovations are more evenly spread among richer and poorer countries." Copyright Centre for Economic Policy Research, Centre for Economic Studies, Maison des Sciences de l'Homme 1997.

Suggested Citation

  • Jonathan Eaton & Eva Gutierrez & Samuel Kortum, 1998. "European technology policy," Economic Policy, CEPR;CES;MSH, vol. 13(27), pages 403-438, October.
  • Handle: RePEc:bla:ecpoli:v:13:y:1998:i:27:p:403-438
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    References listed on IDEAS

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    Cited by:

    1. Carlin, Wendy & Glyn, Andrew & Van Reenen, John, 2001. "Export Market Performance of OECD Countries: An Empirical Examination of the Role of Cost Competitiveness," Economic Journal, Royal Economic Society, vol. 111(468), pages 128-162, January.
    2. Chu, Angus C., 2009. "A politico-economic analysis of the European Union's R&D policy," Journal of Macroeconomics, Elsevier, vol. 31(4), pages 582-590, December.
    3. Jacques Pelkmans, 2006. "European Industrial Policy," Bruges European Economic Policy Briefings 15, European Economic Studies Department, College of Europe.
    4. Wolfgang Keller, 2004. "International Technology Diffusion," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 752-782, September.
    5. Bottazzi, Laura & Peri, Giovanni, 2003. "Innovation and spillovers in regions: Evidence from European patent data," European Economic Review, Elsevier, vol. 47(4), pages 687-710, August.
    6. Luintel, Kul B. & Khan, Mosahid, 2017. "Ideas production and international knowledge spillovers: Digging deeper into emerging countries," Research Policy, Elsevier, vol. 46(10), pages 1738-1754.
    7. Fabrice Murtin & Martina Viarengo, 2011. "The Expansion and Convergence of Compulsory Schooling in Western Europe, 1950–2000," Economica, London School of Economics and Political Science, vol. 78(311), pages 501-522, July.
    8. Kul B. Luintel & Mosahid Khan, 2009. "Heterogeneous ideas production and endogenous growth: an empirical investigation," Canadian Journal of Economics, Canadian Economics Association, vol. 42(3), pages 1176-1205, August.
    9. Georg Koopmann & Felix Münnich, 1999. "National and international developments in technology," Intereconomics: Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 34(6), pages 267-278, November.
    10. Jonathan Eaton & Samuel Kortum, 2004. "Innovation, Trade, and Growth," DEGIT Conference Papers c009_008, DEGIT, Dynamics, Economic Growth, and International Trade.
    11. Jonathan Eaton & Samuel Kortum, 2006. "Innovation, Diffusion, and Trade," NBER Working Papers 12385, National Bureau of Economic Research, Inc.
    12. Rachel Griffith & Stephen Redding & John Van Reenen, 2001. "Measuring the cost-effectiveness of an R&D tax credit for the UK," Fiscal Studies, Institute for Fiscal Studies, vol. 22(3), pages 375-399, September.
    13. Alejandro Nin Pratt, 2016. "Comparing Apples to Apples: A New Indicator of Research and Development Investment Intensity in Agriculture," Working Papers id:11379, eSocialSciences.
    14. Alexander Cobham, "undated". "The Financing and Technology Decisions of SMEs: II. Technology and Policy," QEH Working Papers qehwps25, Queen Elizabeth House, University of Oxford.
    15. Manuel Trajtenberg, 2000. "R&D Policy in Israel: An Overview and Reassessment," NBER Working Papers 7930, National Bureau of Economic Research, Inc.
    16. McCalman, Phillip, 2001. "Reaping what you sow: an empirical analysis of international patent harmonization," Journal of International Economics, Elsevier, vol. 55(1), pages 161-186, October.
    17. Alexander Cobham, "undated". "The Financing and Technology Decisions of SMEs: I. Finance as a Determinant of Investment," QEH Working Papers qehwps24, Queen Elizabeth House, University of Oxford.
    18. Pontus Braunerhjelm & Per Thulin, 2008. "Can countries create comparative advantages? R&D expenditures, high-tech exports and country size in 19 OECD countries, 1981-1999," International Economic Journal, Taylor & Francis Journals, vol. 22(1), pages 95-111.
    19. Neil Foster-McGregor & Mario Holzner & Michael Landesmann & Johannes Pöschl & Robert Stehrer & Roman Stöllinger, 2013. "A ‘Manufacturing Imperative’ in the EU – Europe's Position in Global Manufacturing and the Role of Industrial Policy," wiiw Research Reports 391, The Vienna Institute for International Economic Studies, wiiw.
    20. Gong, Guan & Keller, Wolfgang, 2003. "Convergence and polarization in global income levels: a review of recent results on the role of international technology diffusion," Research Policy, Elsevier, vol. 32(6), pages 1055-1079, June.
    21. David Mayer Foulkes., 2007. "Subdesarrollo y globalización," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 155-192, May.
    22. Viarengo, Martina, 2007. "An historical analysis of the expansion of compulsory schooling in Europe after the Second World War," Economic History Working Papers 4286, London School of Economics and Political Science, Department of Economic History.

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