Research and innovation policies and productivity growth
We review the evidence on the impact of public intervention on private research and innovation, and how research and innovation and R&I policies affect growth in the applied macro models most commonly used in European Union policy analysis. The evidence suggests that R&I grants and R&I tax credits can have positive effects in terms of stimulating investment in innovation. In terms of the impact of public R&I interventions on economy-wide GDP growth and jobs, the available applied macro models predict positive effects over the long term. It therefore takes time before short-term negative effects associated with reallocations of high-skilled labour from other productive activities to generate the extra innovations, and the negative effects from displacing older, more labour-intensive production processes, are compensated for. To the question of whether R&I policies can serve to power growth, the answer can only be a timid yes at this stage. R&I policies certainly have the potential, but still too little is known of what drives their actual effects. More micro and macro evaluations are still needed.
Year of publication: |
2021
|
---|---|
Authors: | Veugelers, Reinhilde |
Publisher: |
Brussels : Bruegel |
Saved in:
freely available
Series: | Bruegel Working Paper ; 08/2021 |
---|---|
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 1776163915 [GVK] hdl:10419/264194 [Handle] |
Source: |
Persistent link: https://www.econbiz.de/10013361953
Saved in favorites
Similar items by person
-
Innovation in EU merger control: Walking the talk
Veugelers, Reinhilde, (2012)
-
Mind Europe's early-stage equity gap
Veugelers, Reinhilde, (2011)
-
Europe's clean technology investment challenge
Veugelers, Reinhilde, (2011)
- More ...