Discussion Paper

No. 2015-29 | April 22, 2015
The Growth Effects of R&D Spending in the EU: A Meta-Analysis
(Published in Special Issue Meta-Analysis in Theory and Practice)

Abstract

In this paper the authors conduct a meta-analysis to examine the link between R&D spending and economic growth in the EU and other regions. The results suggest that the growth-enhancing effect of R&D in the EU15 countries does not differ from that in other countries in general, but it is less significant than that for other industrialized countries. A closer inspection of the data reveals that the weak results for the EU15 stem from comparisons with the US – the US has been able to generate a stronger growth response from its R&D spending. Possible explanations for the US advantage include higher private sector investment in R&D and stronger public-private sector linkages than in the EU. Hence, to reduce the “innovation gap” vis-à-vis the US, it may not be enough for the EU to raise the share of R&D expenditures in GDP: continuous improvements in the European innovation system will also be needed, with focus on areas like private sector R&D and public-private sector linkages.

Data Set

  • data.tab
    [text/tab-separated-values, 62K]
  • data.xlsx
    [application/vnd.openxmlformats-officedocument.spreadsheetml.sheet, 630K]
  • Do-file META.do
    [text/x-stata-syntax, 16K]

JEL Classification:

F43, O51, O52

Assessment

  • Downloads: 2620

Links

Cite As

Ari Kokko, Patrik Gustavsson Tingvall, and Josefin Videnord (2015). The Growth Effects of R&D Spending in the EU: A Meta-Analysis. Economics Discussion Papers, No 2015-29, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2015-29


Comments and Questions


Anonymous - Referee Report 1
May 15, 2015 - 08:54

See attached file


John Scott - R&D and Growth
May 19, 2015 - 13:14

See attached file


Ari Kokko, Patrik Gustavsson Tingvall, and Josefin Videnord - Reply to Referee Report 1
June 05, 2015 - 09:32

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Ari Kokko, Patrik Gustavsson Tingvall, and Josefin Videnord - Note to Reply to Referee Report 1
June 10, 2015 - 11:06

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Ari Kokko, Patrik Gustavsson Tingvall, and Josefin Videnord - Reply to Comment by John Scott
June 19, 2015 - 10:04

See attached file