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R&D Expenditure in the EU: Convergence or Divergence?

Author

Listed:
  • Francisco A. Blanco
  • Francisco J. Delgado
  • Maria J. Presno

Abstract

This article examines the convergence of the R&D expenditure in the EU28 for 2004–2015. We initially run a sigma convergence analysis and conclude with a club convergence approach. The overall results show convergence in the total expenditure, due to the behaviour of the business and higher education sectors, despite government sector divergence. However, noticeable differences between the EU15 and 13 EU countries are apparent. The business enterprise sector is the principle driver of EU15 R&D convergence, whereas for the EU13 this role is played by the government expenditure. The club convergence approach allows us to explore these insights through individualized analysis and clusterization. Results for the EU28 show two clubs for the total expenditure, but the analysis of its components reveals a larger grouping. Results evidence the necessity of revising the EU R&D policies towards greater coordination due to the impact of this expenditure on growth, development and integration.

Suggested Citation

  • Francisco A. Blanco & Francisco J. Delgado & Maria J. Presno, 2018. "R&D Expenditure in the EU: Convergence or Divergence?," Working Papers. Collection B: Regional and sectoral economics 1804, Universidade de Vigo, GEN - Governance and Economics research Network.
    • Handle: RePEc:gov:wpregi:1804
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    File URL: http://infogen.webs.uvigo.es/WPB/WP1804.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    convergence; R&D; expenditure; European Union;

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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