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

Author

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  • Kokko, Ari
  • Tingvall, Patrik Gustavsson
  • Videnord, Josefin

Abstract

In this paper the authors 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.

Suggested Citation

  • Kokko, Ari & Tingvall, Patrik Gustavsson & Videnord, Josefin, 2015. "The growth effects of R&D spending in the EU: A meta-analysis," Economics Discussion Papers 2015-29, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwedp:201529
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    Cited by:

    1. Radojko LUKIC & Srdjan LALIC & Dragana VOJTESKI KLJENAK, 2016. "Research and Development Costs in Retail Trade," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 1(2), pages 170-182, December.
    2. Sá, Elisabete S. & Pinho, José Carlos M.R. de, 2019. "Effect of entrepreneurial framework conditions on R&D transfer to new and growing firms: The case of European Union innovation-driven countries," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 47-58.
    3. Mohd Shahidan Shaari & Diana Nabila Chau Abdullah & Nur Salimah Binti Alias & Nor Syamimi Mohamed Adnan, 2016. "Positive and Negative Effects of Research and Development," International Journal of Energy Economics and Policy, Econjournals, vol. 6(4), pages 767-770.
    4. Adrian Otoiu & Ramona Bere & Catalin Silvestru, 2017. "An Assessment of the First Round Impact of Innovation Industries on Europe’s Regional Economies," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(44), pages 289-289, February.
    5. Teemu Makkonen & Timo Mitze, 2019. "Deconstructing the Education-Innovation-Development Nexus in the EU-28 Using Panel Causality and Poolability Tests," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 516-549, June.
    6. Bruno, Randolph Luca & Douarin, Elodie & Korosteleva, Julia & Radosevic, Slavo, 2019. "Determinants of Productivity Gap in the European Union: A Multilevel Perspective," IZA Discussion Papers 12542, Institute of Labor Economics (IZA).
    7. Jacques Mairesse & Pierre Mohnen & Ad Notten, 2025. "Innovation and productivity: the recent empirical literature and the state of the art," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(1), pages 1-27, March.
    8. Li-Ying, Jason & Sofka, Wolfgang & Tuertscher, Philipp, 2022. "Managing innovation ecosystems around Big Science Organizations," Technovation, Elsevier, vol. 116(C).
    9. Marinko Skare & Beata Gavurova & Martin Rigelsky, 2024. "Transforming power of research and development on inequality and well-being: a European Union perspective within the circular economy framework," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-16, December.
    10. Awaworyi Churchill, S. & Yew, S.L., 2017. "Are government transfers harmful to economic growth? A meta-analysis," Economic Modelling, Elsevier, vol. 64(C), pages 270-287.
    11. Wojciech Chmielewski & Marta Postuła & Przemysław Dubel, 2023. "The Impact of Expenditure on Research and Development on Selected Energy Factors in the European Union," Energies, MDPI, vol. 16(8), pages 1-18, April.

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    Keywords

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    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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