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Government science and technology budgets in times of crisis

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  • Makkonen, Teemu

Abstract

Following a recent paper by Filippetti and Archibugi [Filippetti, A., Archibugi, D., 2011. Innovation in times of crisis: National systems of innovation, structure and demand. Research Policy 40(2), 179–192], this article aims to contribute to the sparse literature on the impacts of the recent economic downturn on the government expenditures and innovative activities of the countries of the enlarged European Union (EU-27). Using Eurostat's socio-economic objectives i.e. the Nomenclature for the Analysis and Comparison of Scientific Programmes and Budgets (NABS 2007 classification), this paper addresses the impact of the recent economic downturn on governments’ science and technology (S&T) budgets across the 27 EU countries. Most countries followed a pro-cyclical pattern, where the government S&T budgets in most NABS shrunk along slowing gross domestic product growth in similar pace with total government expenditure. The new member states of Eastern Europe were the most affected.

Suggested Citation

  • Makkonen, Teemu, 2013. "Government science and technology budgets in times of crisis," Research Policy, Elsevier, vol. 42(3), pages 817-822.
    • Handle: RePEc:eee:respol:v:42:y:2013:i:3:p:817-822
    DOI: 10.1016/j.respol.2012.10.002
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    3. Mitze, Timo & Makkonen, Teemu, 2023. "Can large-scale RDI funding stimulate post-crisis recovery growth? Evidence for Finland during COVID-19," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    4. Pijus Krūminas, 2019. "Public R&D under different electoral rules: evidence from OECD countries," Constitutional Political Economy, Springer, vol. 30(3), pages 300-329, September.
    5. Bonnín Roca, Jaime & Vaishnav, Parth & Morgan, Granger M. & Fuchs, Erica & Mendonça, Joana, 2021. "Technology Forgiveness: Why emerging technologies differ in their resilience to institutional instability," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    6. Cruz-Castro, Laura & Sanz-Menéndez, Luis, 2016. "The effects of the economic crisis on public research: Spanish budgetary policies and research organizations," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 157-167.
    7. Darko Vukovic & Dejan Radulovic & Milos Markovic & Dmitry Kochetkov & Natalya Vlasova, 2017. "Development Of A Financial Framework For The National Plan For Regional Development: The Evidence From Serbia," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1314-1328.
    8. João Lopes & João Lussuamo, 2021. "Barriers to University-Industry Cooperation in a Developing Region," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1019-1035, September.
    9. Conti, Annamaria & Dass, Nishant & Di Lorenzo, Francesco & Graham, Stuart J.H., 2019. "Venture capital investment strategies under financing constraints: Evidence from the 2008 financial crisis," Research Policy, Elsevier, vol. 48(3), pages 799-812.
    10. Massimiliano Mazzanti & Matteo Mazzarano & Andrea Pronti & Marco Quatrosi, 2020. "Fiscal policies, public investments and wellbeing: mapping the evolution of the EU," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 2(4), pages 725-749, December.
    11. Damián Tojeiro-Rivero & Rosina Moreno & Erika Badillo, 2016. "“Breakthrough innovations: The impact of foreign acquisition of knowledge”," AQR Working Papers 201610, University of Barcelona, Regional Quantitative Analysis Group, revised Nov 2016.
    12. Pellens, Maikel & Peters, Bettina & Hud, Martin & Rammer, Christian & Licht, Georg, 2018. "Public investment in R&D in reaction to economic crises: A longitudinal study for OECD countries," ZEW Discussion Papers 18-005, ZEW - Leibniz Centre for European Economic Research.
    13. Damián Tojeiro-Rivero & Rosina Moreno & Erika Raquel Badillo, 2019. "Radical Innovations: The Role of Knowledge Acquisition from Abroad," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 55(2), pages 173-207, September.
    14. Hud, Martin & Hussinger, Katrin, 2015. "The impact of R&D subsidies during the crisis," Research Policy, Elsevier, vol. 44(10), pages 1844-1855.
    15. Ascensión Barajas & Elena Huergo & Lourdes Moreno, 2021. "The role of public loans in financing business R&D through the economic cycle," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 505-538, July.
    16. Daniele Archibugi & Andrea Filippetti & Marion Frenz, 2018. "Investment in innovation for European recovery: a public policy priority," Management Working Papers 16, Birkbeck Department of Management, revised Feb 2021.

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    More about this item

    Keywords

    Economic crisis; European Union; Public R&D funding; S&T budgets;
    All these keywords.

    JEL classification:

    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other
    • H69 - Public Economics - - National Budget, Deficit, and Debt - - - Other
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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