Towards Integration or Fragmentation?
Edited by Henri Delanghe, Ugur Muldur and Luc Soete
Chapter 11: The EU R & D Under-investment: Patterns in R & D Expenditure and Financing
11. The EU R&D under-investment: patterns in R&D expenditure and financing Vincent Duchêne, Elissavet Lykogianni and Arnold Verbeek 1 THE POLICY CONTEXT: R&D INVESTMENT AT THE HEART OF THE LISBON STRATEGY Over the past decade, increased policy attention has been paid to the level and growth of research and development (R&D) investment in the various sectors of the European economy. This increased policy concern finds its origin in two main trends. On the one hand, there is mounting evidence that in spite of the recent economic downturn in the US, the EU suffers from a structural growth handicap. Since the mid-1990s and for the first time since the end of World War II, the Union is no longer catching up with the US in terms of productivity. This may reflect under-performance in the creation, diffusion and utilization of new knowledge over recent years (Denis et al., 2006). On the other hand, with the rapid rise of – mainly Asian – newly emerging economies, a ‘multi-polar world’ is developing in which the sources of competitiveness, such as technology and human capital, are more evenly distributed than ever before. In this new context, the EU represents a diminishing share of the world’s population, GDP and R&D investment. Newly emerging economies are no longer competing on the basis of low-cost activities alone: China, for instance, is about to overtake the EU-27 in terms of both its share of global high-tech product exports and its R&D intensity (European Commission,...
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