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Business R&D in the ICT sector: examining the European ICT R&D deficit

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  • Sven Lindmark
  • Geomina Turlea
  • Martin Ulbrich

Abstract

Two data sets are contrasted: country-level data (R&D performed by business in a particular sector and country (BERD) and company-level data (R&D financed by a particular company regardless where R&D investment is performed). About half of the overall EU vs. US R&D gap is in the information and communications technologies (ICT) sector. In turn, this ICT R&D gap has two faces. Country data suggest that the gap is largely intrinsic: the EU displays lower R&D intensities in several sub-sectors, while ICT sector size and composition are quite similar. On the other hand, company data suggest that the gap is instead structural: the sector size and composition of sub-sectors differ greatly, while R&D intensities are similar. One major explanatory factor lies in international flows of R&D and value added. Companies tend to allocate a larger share of their value added and a smaller share of R&D outside their home markets. In the sub-sectors which include much larger and more numerous US companies, these flows are unbalanced, and (BERD) R&D intensities are thus higher in the US than in Europe, everything else being equal. Copyright , Beech Tree Publishing.

Suggested Citation

  • Sven Lindmark & Geomina Turlea & Martin Ulbrich, 2010. "Business R&D in the ICT sector: examining the European ICT R&D deficit," Science and Public Policy, Oxford University Press, vol. 37(6), pages 413-428, July.
  • Handle: RePEc:oup:scippl:v:37:y:2010:i:6:p:413-428
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    File URL: http://hdl.handle.net/10.3152/030234210X508624
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    Cited by:

    1. Castellani, Davide & Piva, Mariacristina & Schubert, Torben & Vivarelli, Marco, 2019. "R&D and productivity in the US and the EU: Sectoral specificities and differences in the crisis," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 279-291.
    2. Pietro Moncada-Paternò-Castello & Nicola Grassano, 2022. "The EU vs US corporate R&D intensity gap: investigating key sectors and firms [A primer on innovation and growth]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(1), pages 19-38.
    3. Pietro Moncada-Paternò-Castello & Sara Amoroso & Michele Cincera, 0. "Corporate R&D intensity decomposition: different data, different results?," Science and Public Policy, Oxford University Press, vol. 47(4), pages 458-473.
    4. Yvonne McNulty & Chris Brewster, 2016. "Theorizing the Meaning(s) of 'Expatriate': Establishing Boundary Conditions," John H Dunning Centre for International Business Discussion Papers jhd-dp2016-05, Henley Business School, University of Reading.
    5. Davide Castellani & Mariacristina Piva & Torben Schubert & Marco Vivarelli, 2018. "The source of the US /EU Productivity Gap:Less and less effective R&D," LEM Papers Series 2018/16, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    6. Castellani, Davide & Piva, Mariacristina & Schubert, Torben & Vivarelli, Marco, 2016. "The Productivity Impact of R&D Investment: A Comparison between the EU and the US," IZA Discussion Papers 9937, Institute of Labor Economics (IZA).
    7. Federico Biagi & Juraj Stančík, 2012. "Characterizing the evolution of the EU R&D intensity gap using data from top R&D performers," ERSA conference papers ersa12p321, European Regional Science Association.
    8. Raquel Ortega-Argilés, 2012. "The Transatlantic Productivity Gap: A Survey Of The Main Causes," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 395-419, July.

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