Projection of R&D-intensive enterprise growth to the year 2020: Implications for EU policy?
The paper investigates how sector composition and the magnitude of R&D investment in the EU may differ in 2020 in comparison to the past, if a selection of top R&D-investing SMEs were assumed to be on a fast growth track while the top R&D-investing large-scale companies continue to grow as before. The background of this research objective is the emerging focus on SMEs – and in particular the fast-growing among them – with regard to the "Europe 2020" policy strategy. The study relies on the sample of top R&D-investing firms as given by the latest available "EU Industrial R&D Investment Scoreboard" editions, building there from an unbalanced panel. Scenarios were developed by distinguishing SMEs' assumed growth paths vs. that of large scale companies. A linear prediction model has been used to calculate the scenario simulations. Overall, the study indicates that if one expects the (R&D-intensive) small firms to be a driving force for a substantial structural change in the EU economy, from being driven by medium-tech sectors towards a high-tech based economy, it requires either a significant longer-term horizon of the assumed fast growth track than the simulated 10 years, or small firms' growth figures which even exceed the assumed annual 30% (as in the most optimistic scenario). Neither case appears to be particularly realistic. Hence, we need more top R&D investors in Europe to further intensify their engagement in R&D (increasing volume and R&D intensity) as well as numerous small firms that start and/or significantly increase their existing R&D activities and thus seek to become large firms and (global) leading R&D investors. Accordingly, a broad R&D and innovation (policy) strategy is needed with policy interventions which also target well all these options; i.e. stimulating firm growth and R&D and innovation-intensity across firm-sized classes.
|Date of creation:||Jan 2012|
|Date of revision:|
|Contact details of provider:|| Postal: C/ Inca Garcilaso, s/n 41092 Seville|
Phone: +34 954 48 8318
Fax: +34 954 48 8300
Web page: https://ec.europa.eu/jrc/en
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Reinhilde Veugelers & Michele Cincera, 2010.
"Young leading innovators and EUs R&D intensity gap,"
- Michele Cincera & Reinhilde Veugelers, 2010. "Young Leading Innovators and EU’s R&D intensity gap," JRC Working Papers on Corporate R&D and Innovation 2010-07, Joint Research Centre (Seville site).
- Alex Coad & Werner Hölzl, 2010.
"Firm Growth: Empirical Analysis,"
WIFO Working Papers
- Alfred Spielkamp & Christian Rammer, 2006. "R&D - Strategic elements for innovation and market success," Management & Marketing, Economic Publishing House, vol. 1(4), Winter.
- Raquel Ortega-Argilés & Lesley Potters & Peter Voigt, 2009. "R&D-intensive SMEs in Europe: What do we know about them?," JRC Working Papers on Corporate R&D and Innovation 2009-15, Joint Research Centre (Seville site).
- Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, March.
- Mathieu, Azèle & van Pottelsberghe de la Potterie, Bruno, 2008.
"A Note on The Drivers of R&D Intensity,"
CEPR Discussion Papers
6684, C.E.P.R. Discussion Papers.
- Van Reenen, John, 1997. "Why has Britain had slower R&D growth?," Research Policy, Elsevier, vol. 26(4-5), pages 493-507, December.
- Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2003.
"ICT and Productivity in Europe and the United States Where Do the Differences Come From?,"
CESifo Economic Studies,
CESifo, vol. 49(3), pages 295-318.
- Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2003. "ICT and Productivity in Europe and the United States: Where Do the Differences Come From?," Economics Program Working Papers 03-05, The Conference Board, Economics Program.
- Ricardo J. Caballero & Mohamad L. Hammour, 2001.
"Creative Destruction and Development : Institutions, Crises and Restructuring,"
DELTA Working Papers
2001-04, DELTA (Ecole normale supérieure).
- Ricardo J. Caballero & Mohamad L. Hammour, 2000. "Creative Destruction and Development: Institutions, Crises, and Restructuring," NBER Working Papers 7849, National Bureau of Economic Research, Inc.
- Francesco Bogliacino, 2014.
"Innovation and employment: A firm level analysis with European R&D Scoreboard data,"
ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 15(2), pages 141_154.
- Francesco Bogliacino, 2010. "Innovation and Employment: A firm level analysis with European R&D Scoreboard data," JRC Working Papers on Corporate R&D and Innovation 2010-08, Joint Research Centre (Seville site).
When requesting a correction, please mention this item's handle: RePEc:ipt:wpaper:201201. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Institute Publication Officer)
If references are entirely missing, you can add them using this form.