Modelling the Lisbon Strategy: Analysing Policies to Promote Knowledge Investment with an Endogenous Growth Model

Werner Roeger, Janos Varga and Jan in 't Veld
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Werner Roeger: European Commission, DG ECFIN, BU-1, 3/163, Rue de la Loi 200, Brussels/Bruxelles, B-1049, Belgium. E-mails: werner.roeger@ec.europa.eu; janos.varga@ec.europa.eu; jan.intveld@ec.europa.eu

Comparative Economic Studies, 2009, vol. 51, issue 4, 520-539

Abstract: We use an endogenous growth model to look at policies that could increase the rate of knowledge investment and innovations in the EU. Among the possible options we consider are R&D tax incentives, removal of entry barriers for start-ups, increasing competition in services and high-skilled immigration. All policies discussed in this paper have the potential to increase knowledge investment in the EU. The most promising reform areas seem to be a reduction in financial frictions and increased competition in services.

Date: 2009
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