European Productivity Gaps Is R&D the Solution?
Christoph Meister and
No 05-06, DRUID Working Papers from DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies
This paper investigates the potential impact of increased business R&D efforts in Europe on the total factor productivity gap between European and U.S. industry. The paper addresses Europe’s ambition, expressed at the 2000 Lisbon Summit to become “the most competitive and dynamic knowledge-based economy in the world”, and the 3% R&D intensity target for Europe formulated at the 2002 Barcelona Summit. Based on existing empirical models from the literature on productivity and R&D expenditures, we provide projections on the expected productivity impacts of increased R&D in manufacturing industries. The results suggest that raising European R&D is not a complete solution to the European productivity backlog relative to the U.S. We also find that the most dramatic impacts may be expected from raising R&D in so-called low-tech sectors.
Keywords: Technology; Economic growth; R&D; Europe; United States (search for similar items in EconPapers)
JEL-codes: O38 O47 P52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-eff, nep-ino and nep-tid
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Chapter: European Productivity Gaps: Is R&D the Solution? (2006)
Working Paper: European Productivity Gaps: Is R&D the solution? (2004)
Working Paper: European productivity gaps: Is R&D the solution? (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:aal:abbswp:05-06
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