The Growth Effects of R&D Spending in the EU: A Meta-Analysis

Ari Kokko, Patrik Gustavsson Tingvall, Josefin Videnord

    Research output: Working paperResearch

    Abstract

    In this paper we 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.
    Original languageEnglish
    Place of PublicationStockholm
    PublisherRatio: Näringslivets forskningsinstitut
    Number of pages25
    Publication statusPublished - 2015
    SeriesRatio Working Paper
    Number254

    Cite this

    Kokko, A., Tingvall, P. G., & Videnord, J. (2015). The Growth Effects of R&D Spending in the EU: A Meta-Analysis. Stockholm: Ratio: Näringslivets forskningsinstitut. Ratio Working Paper, No. 254
    Kokko, Ari ; Tingvall, Patrik Gustavsson ; Videnord, Josefin. / The Growth Effects of R&D Spending in the EU : A Meta-Analysis. Stockholm : Ratio: Näringslivets forskningsinstitut, 2015. (Ratio Working Paper; No. 254).
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    Kokko, A, Tingvall, PG & Videnord, J 2015 'The Growth Effects of R&D Spending in the EU: A Meta-Analysis' Ratio: Näringslivets forskningsinstitut, Stockholm.

    The Growth Effects of R&D Spending in the EU : A Meta-Analysis. / Kokko, Ari; Tingvall, Patrik Gustavsson; Videnord, Josefin.

    Stockholm : Ratio: Näringslivets forskningsinstitut, 2015.

    Research output: Working paperResearch

    TY - UNPB

    T1 - The Growth Effects of R&D Spending in the EU

    T2 - A Meta-Analysis

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    AU - Tingvall, Patrik Gustavsson

    AU - Videnord, Josefin

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    N2 - In this paper we 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.

    AB - In this paper we 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.

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    KW - R&D

    KW - European Union

    KW - EU15

    KW - Economic growth

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    Kokko A, Tingvall PG, Videnord J. The Growth Effects of R&D Spending in the EU: A Meta-Analysis. Stockholm: Ratio: Näringslivets forskningsinstitut. 2015.