IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v42y2013i3p817-822.html
   My bibliography  Save this article

Government science and technology budgets in times of crisis

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048733312002296
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.respol.2012.10.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alberto Alesina & Filipe R. Campante & Guido Tabellini, 2008. "Why is Fiscal Policy Often Procyclical?," Journal of the European Economic Association, MIT Press, vol. 6(5), pages 1006-1036, September.
    2. Durevall, Dick & Henrekson, Magnus, 2011. "The futile quest for a grand explanation of long-run government expenditure," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 708-722, August.
    3. Philip Arestis & Malcolm Sawyer, 2005. "Reinventing Fiscal Policy," Palgrave Macmillan Books, in: Blandine Laperche & Dimitri Uzunidis (ed.), John Kenneth Galbraith and the Future of Economics, chapter 9, pages 105-125, Palgrave Macmillan.
    4. Hye-Seon Moon & Jeong-Dong Lee, 2005. "A fuzzy set theory approach to national composite S&T indices," Scientometrics, Springer;Akadémiai Kiadó, vol. 64(1), pages 67-83, July.
    5. Benavente, José Miguel & Crespi, Gustavo & Figal Garone, Lucas & Maffioli, Alessandro, 2012. "The impact of national research funds: A regression discontinuity approach to the Chilean FONDECYT," Research Policy, Elsevier, vol. 41(8), pages 1461-1475.
    6. Henry Etzkowitz & Marina Ranga, 2009. "A trans-Keynesian vision of innovation for the contemporary economic crisis: ‘picking winners’ revisited," Science and Public Policy, Oxford University Press, vol. 36(10), pages 799-808, December.
    7. van Dalen, Hendrik P & Swank, Otto H, 1996. "Government Spending Cycles: Ideological or Opportunistic?," Public Choice, Springer, vol. 89(1-2), pages 183-200, October.
    8. Abbott, Andrew & Jones, Philip, 2012. "Intergovernmental transfers and procyclical public spending," Economics Letters, Elsevier, vol. 115(3), pages 447-451.
    9. Walde, Klaus & Woitek, Ulrich, 2004. "R&D expenditure in G7 countries and the implications for endogenous fluctuations and growth," Economics Letters, Elsevier, vol. 82(1), pages 91-97, January.
    10. Paunov, Caroline, 2012. "The global crisis and firms’ investments in innovation," Research Policy, Elsevier, vol. 41(1), pages 24-35.
    11. Abbott, Andrew & Jones, Philip, 2011. "Procyclical government spending: Patterns of pressure and prudence in the OECD," Economics Letters, Elsevier, vol. 111(3), pages 230-232, June.
    12. Joseph Stiglitz, 1999. "Responding to Economic Crises: Policy Alternatives for Equitable Recovery and Development," Manchester School, University of Manchester, vol. 67(5), pages 409-427, September.
    13. Jaejoon Woo, 2009. "Why Do More Polarized Countries Run More Procyclical Fiscal Policy?," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 850-870, November.
    14. Afonso, António & Furceri, Davide, 2010. "Government size, composition, volatility and economic growth," European Journal of Political Economy, Elsevier, vol. 26(4), pages 517-532, December.
    15. Lane, Philip R., 2003. "The cyclical behaviour of fiscal policy: evidence from the OECD," Journal of Public Economics, Elsevier, vol. 87(12), pages 2661-2675, December.
    16. Daniele Archibugi & Andrea Filippetti, 2011. "Is the Economic Crisis Impairing Convergence in Innovation Performance across Europe?," Journal of Common Market Studies, Wiley Blackwell, vol. 49(6), pages 1153-1182, November.
    17. Philip R. Lane, 2003. "Business Cycles and Macroeconomic Policy in Emerging Market Economies," International Finance, Wiley Blackwell, vol. 6(1), pages 89-108, March.
    18. repec:bla:manchs:v:67:y:1999:i:5:p:409-27 is not listed on IDEAS
    19. Caroline S Wagner, 2002. "The elusive partnership: Science and foreign policy," Science and Public Policy, Oxford University Press, vol. 29(6), pages 409-417, December.
    20. Filippetti, Andrea & Archibugi, Daniele, 2011. "Innovation in times of crisis: National Systems of Innovation, structure, and demand," Research Policy, Elsevier, vol. 40(2), pages 179-192, March.
    21. Young Lee & Taeyoon Sung, 2007. "Fiscal Policy, Business Cycles and Economic Stabilisation: Evidence from Industrialised and Developing Countries," Fiscal Studies, Institute for Fiscal Studies, vol. 28(4), pages 437-462, December.
    22. Rainer Frietsch & Aris Kaloudis, 2007. "Monitoring sector specialisation of public and private funded business research and development," Science and Public Policy, Oxford University Press, vol. 34(6), pages 431-443, July.
    23. David Romer, 1993. "The New Keynesian Synthesis," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 5-22, Winter.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhai, Ying & Wang, Wenzhi & Zhou, Liying, 2024. "Green efficiency loss caused by economic growth goals: Evidence from an emerging economy," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 983-995.
    2. 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).
    3. 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.
    4. 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).
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. Hud, Martin & Hussinger, Katrin, 2015. "The impact of R&D subsidies during the crisis," Research Policy, Elsevier, vol. 44(10), pages 1844-1855.
    11. 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.
    12. 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.
    13. Pellens, Maikel & Peters, Bettina & Hud, Martin & Rammer, Christian & Licht, Georg, 2024. "Public R&D investment in economic crises," Research Policy, Elsevier, vol. 53(10).
    14. 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.
    15. 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.
    16. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hud, Martin & Hussinger, Katrin, 2015. "The impact of R&D subsidies during the crisis," Research Policy, Elsevier, vol. 44(10), pages 1844-1855.
    2. 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.
    3. Combes, Jean-Louis & Minea, Alexandru & Sow, Moussé, 2017. "Is fiscal policy always counter- (pro-) cyclical? The role of public debt and fiscal rules," Economic Modelling, Elsevier, vol. 65(C), pages 138-146.
    4. Guerguil, Martine & Mandon, Pierre & Tapsoba, René, 2017. "Flexible fiscal rules and countercyclical fiscal policy," Journal of Macroeconomics, Elsevier, vol. 52(C), pages 189-220.
    5. Abbott, Andrew & Jones, Philip, 2012. "Budget deficits and social protection: Cyclical government expenditure in the OECD," Economics Letters, Elsevier, vol. 117(3), pages 909-911.
    6. Pellens, Maikel & Peters, Bettina & Hud, Martin & Rammer, Christian & Licht, Georg, 2024. "Public R&D investment in economic crises," Research Policy, Elsevier, vol. 53(10).
    7. Navarat Temsumrit, 2020. "Does Democracy Affect Cyclical Fiscal Policy? Evidence From Developing Countries," PIER Discussion Papers 125, Puey Ungphakorn Institute for Economic Research.
    8. Abbott, Andrew & Jones, Philip, 2021. "Government response to increased demand for public services: The cyclicality of government health expenditures in the OECD," European Journal of Political Economy, Elsevier, vol. 68(C).
    9. Andrew Abbott & Philip Jones, 2014. "Pressures to Increase Public Expenditure and Patterns of Procyclical Expenditure," Economic Issues Journal Articles, Economic Issues, vol. 19(2), pages 39-54, September.
    10. Andrew Abbott & Philip Jones, 2021. "The cyclicality of government foreign-aid expenditure: voter awareness in “good” times and in “bad”," Public Choice, Springer, vol. 186(1), pages 97-117, January.
    11. Andrew Abbott & Philip Jones, 2013. "Procyclical government spending: a public choice analysis," Public Choice, Springer, vol. 154(3), pages 243-258, March.
    12. Abbott, Andrew & Jones, Philip, 2014. "‘Leaning Against an Open Door’: Ideology and the cyclicality of public expenditure," Journal of Policy Modeling, Elsevier, vol. 36(6), pages 957-969.
    13. Israa A. El Husseiny, 2018. "On the Cyclical Behavior of Fiscal Policy in Egypt," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 12(1), March.
    14. Hien Nguyen Thi Kim, 2016. "Navigating Cyclicality of Fiscal Policy in Vietnam : An Empirical Investigation," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(2), pages 159-173, October.
    15. Aygun Garayeva & Gulzar Tahirova, 2017. "Government Spending Effectiveness and the Quality of Fiscal Institutions," Business & Management Compass, University of Economics Varna, issue 2, pages 128-143.
    16. Haryo Kuncoro, 2014. "The cyclicality of government expenditure in developing country: the case of Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 6(1), pages 23-37, April.
    17. Asif Ahmad & Richard McManus & F. Gulcin Ozkan, 2021. "Fiscal space and the procyclicality of fiscal policy: The case for making hay while the sun shines," Economic Inquiry, Western Economic Association International, vol. 59(4), pages 1687-1701, October.
    18. Klaus Schmidt-Hebbel, 2010. "Macroeconomic Regimes, Policies and Outcomes in the World," Estudios de Economia, University of Chile, Department of Economics, vol. 37(2 Year 20), pages 161-187, December.
    19. Brückner, Markus & Chong, Alberto & Gradstein, Mark, 2012. "Estimating the permanent income elasticity of government expenditures: Evidence on Wagner's law based on oil price shocks," Journal of Public Economics, Elsevier, vol. 96(11), pages 1025-1035.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:42:y:2013:i:3:p:817-822. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/respol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.