Scandinavian Working Papers in Economics

Ratio Working Papers,
The Ratio Institute

No 254: The Growth Effects of R&D Spending in the EU: A Meta-Analysis

Ari Kokko (), Patrik Gustavsson Tingvall () and Josefin Videnord ()
Additional contact information
Ari Kokko: Copenhagen Business School
Patrik Gustavsson Tingvall: The Ratio institute and Söderturn university, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden
Josefin Videnord: The Ratio institute and Uppsala university, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden

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.

Keywords: meta-analysis; R&D; European Union; EU15; USA; Economic Growth

JEL-codes: F43; O51; O52

25 pages, April 14, 2015

Full text files

ak_pt_jv_growth_effe...velopment_eu_254.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Martin Korpi ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2020-02-16 18:57:36.