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Can Innovation Explain the Increasing Growth Differences in the 1990s?

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  • Karl Aiginger

Abstract

The growth in manufacturing output and productivity is related to several indicators of innovation activities: research, human capital, knowledge, capabilities and the use of information and communication technology. Additionally, the need for restructuring forced mature and capital-intensive industries throughout Europe to increase their productivity. The impact of innovation on growth and productivity seems to have been stronger in the USA than in Europe. This is a result of industry patterns and the cumulative nature of causes and effects. Only a small set of European top countries manages to close the gap towards the USA with respect to some innovation indicators and are successfully contesting the USA.

Suggested Citation

  • Karl Aiginger, 2002. "Can Innovation Explain the Increasing Growth Differences in the 1990s?," Austrian Economic Quarterly, WIFO, vol. 7(3), pages 132-155, October.
    • Handle: RePEc:wfo:wquart:y:2002:i:3:p:132-155
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