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


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Moncada-Paterno-Castello, P and Ciupagea, C and Smith, KH and Tubke, A and Tubbs, M (2010) Does Europe perform too little corporate R&D? A comparison of UE and non-EU corporate R&D performance. Research Policy, 39 (4). pp. 523-536. ISSN 0048-7333

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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.

Item Type: Article
Keywords: Corporate R&D investment; R&D indicators; Decomposition of R&D intensity; Firms’ demographics; EU R&D deficit
Journal or Publication Title: Research Policy
Page Range: pp. 523-536
ISSN: 0048-7333
Identification Number - DOI: 10.1016/j.respol.2010.02.012
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Date Deposited: 06 Mar 2011 23:43
Last Modified: 18 Nov 2014 04:16
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