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The research and innovation divide in the EU and its economic consequences

Author

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  • Andrés RODRÍGUEZ-POSE

    (European Commission)

Abstract

This paper looks at the economic consequences of the research and innovation divide across EU regions and highlights the policy challenge they represent. It reviews the theoretical factors behind current levels of territorial polarisation, maps the current state of this divide and presents an econometric approach to identifying the effects. The core of the argument is that research and development investment alone does not trigger the same returns on investment everywhere because of several factors. These are linked to the cost of technology accessibility in different places, the distance to the technological frontier, positive externalities from larger and denser regions, the quality of local institutions, and hampered knowledge sharing.

Suggested Citation

  • Andrés RODRÍGUEZ-POSE, 2020. "The research and innovation divide in the EU and its economic consequences," EU research and innovation paper series KI-BD-20-004-EN-N, Directorate General for Research and Innovation (DG RTD) of the European Commission.
    • Handle: RePEc:eug:wpaper:ki-bd-20-004-en-n
    DOI: 10.2777/724313
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    File URL: https://research-and-innovation.ec.europa.eu/knowledge-publications-tools-and-data/publications/all-publications/research-and-innovation-divide-eu-and-its-economic-consequences_en
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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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