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Does Europe perform too little corporate R&D? A comparison of EU and non-EU corporate R&D performance

Author

Listed:
  • Pietro Moncada-Paternò-Castello

    (European Commission - JRC)

  • Constantin Ciupagea

    (Institute of World Economy and Romanian Centre for Economic Modelling)

  • Keith Smith

    (Australian Innovation Research Centre, University of Tasmania)

  • Alexander Tübke

    (European Commission - JRC)

  • Mike Tubbs

    (Innovomantex Ltd and Ashcroft International Business School)

Abstract

This paper examines whether there are differences in private R&D investment performance between the EU and the US and, if so, why. The study is based on data from the 2008 EU Industrial R&D Investment Scoreboard. The investigation assesses the effects of several very distinct factors that can determine the relative size of the overall R&D intensities of the two economies: these are the influence of sector composition (structural effect) vis-à-vis the intensity of R&D in each sector (intrinsic effect) and the company demographics. The paper finds that the lower overall corporate R&D intensity for the EU is the result of sector specialisation (structural effect) - the US has a stronger sectoral specialisation in the high R&D intensity (especially ICT-related) sectors than does the EU, and also has a much larger population of R&D investing firms within these sectors. Since aggregate R&D indicators are so closely dependent on industrial structures, many of the debates and claims about differences in comparative R&D performance are in effect about industrial structure rather than sector R&D performance. These have complex policy implications that are discussed in the closing section.

Suggested Citation

  • Pietro Moncada-Paternò-Castello & Constantin Ciupagea & Keith Smith & Alexander Tübke & Mike Tubbs, 2009. "Does Europe perform too little corporate R&D? A comparison of EU and non-EU corporate R&D performance," JRC Working Papers on Corporate R&D and Innovation 2009-11, Joint Research Centre.
    • Handle: RePEc:ipt:wpaper:200911
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    More about this item

    Keywords

    Research and Development intensity; EU-US R&D gap; size of firms;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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