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Exploring Europe's R&D deficit relative to the US: Differences in the rates of return to R&D of young leading R&D firms

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  • Michele Cincera
  • Reinhilde Veugelers

Abstract

This paper examines the sources of the EU’s lagging business R&D performance relative to the US, particularly the contribution of missing young leading innovators in high technology intensive sectors in Europe. It investigates through econometric analysis whether the lower presence in the EU of young leading innovators and in high-tech sectors is due to lower rates of return to R&D as compared to their US counterparts. The analysis indeed finds such lower rates of return.

Suggested Citation

  • Michele Cincera & Reinhilde Veugelers, 2013. "Exploring Europe's R&D deficit relative to the US: Differences in the rates of return to R&D of young leading R&D firms," Working Papers TIMES² 2013 - 001, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:ict:wpaper:2013/143352
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    References listed on IDEAS

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    1. Michele Cincera & Julien Ravet & Reinhilde Veugelers, 2014. "R&D Financing Constraints of Young and Old Innovation Leaders in the EU and the US," Working Papers TIMES² 2014-008, ULB -- Universite Libre de Bruxelles.

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