Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/25681 
Year of Publication: 
2007
Series/Report no.: 
Jena Economic Research Papers No. 2007,107
Publisher: 
Friedrich Schiller University Jena and Max Planck Institute of Economics, Jena
Abstract: 
This paper investigates the causes of the shortfall in private R&D expenditure of the EU compared to the US. It shows that differences in the structure of the two economies play only a minor role in explaining the R&D gap. Instead, the European R&D shortfall is mainly caused by a negative intrinsic effect, meaning that companies within European industries spend less on R&D than their US peers in the same sectors. In addition, this negative intrinsic effect is mainly due to institutional differences between the US and the EU15. Government funding of R&D and the internationalization of R&D provide significant explanation as well.
Subjects: 
private R&D intensity
internationalization of R&D
economic structure
sector-composition effect
intrinsic effect
JEL: 
O32
O38
F23
R39
Document Type: 
Working Paper

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