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The growth effects of R&D spending in the EU: A meta-analysis

Listed author(s):
  • Kokko, Ari
  • Tingvall, Patrik Gustavsson
  • Videnord, Josefin

In this paper we conduct a meta-analysis to examine the link between R&D spending and economic growth in the EU and other regions. The results suggest that the growth-enhancing effect of R&D in the EU15 countries does not differ from that in other countries in general, but it is less significant than that for other industrialized countries. A closer inspection of the data reveals that the weak results for the EU15 stem from comparisons with the US - the US has been able to generate a stronger growth response from its R&D spending. Possible explanations for the US advantage include higher private sector investment in R&D and stronger public-private sector linkages than in the EU. Hence, to reduce the "innovation gap" vis-à-vis the US, it may not be enough for the EU to raise the share of R&D expenditures in GDP: continuous improvements in the European innovation system will also be needed, with focus on areas like private sector R&D and public-private sector linkages.

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File URL: http://dx.doi.org/10.5018/economics-ejournal.ja.2015-40
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File URL: https://www.econstor.eu/bitstream/10419/122200/1/839990510.pdf
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Article provided by Kiel Institute for the World Economy (IfW) in its journal Economics: The Open-Access, Open-Assessment E-Journal.

Volume (Year): 9 (2015)
Issue (Month): ()
Pages: 1-26

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Handle: RePEc:zbw:ifweej:201540
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