R&D in services industries and the EU-US R&D investment gap

Vincent Duchêne, Elissavet Lykogianni and Arnold Verbeek

Science and Public Policy, 2010, vol. 37, issue 6, 443-453

Abstract: This paper focuses on the impact of differences in practice between European and US national statistical offices when classifying R&D expenditure by industry. We examine the impact of these differences on the role of the services sector in the EU-US R&D investment gap. According to official statistics, services industries appear to explain nearly the entire EU-US R&D intensity gap (US services have much higher R&D intensities). We argue that this is almost entirely the result of a statistical artefact: EU statistical offices redistribute R&D in the services sector to the corresponding manufacturing sectors to a much greater extent than in the US. Thus the EU R&D deficit against the US does not specifically emanate from the services sector. Copyright , Beech Tree Publishing.

Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:oup:scippl:v:37:y:2010:i:6:p:443-453

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