Science-technology-industry links and the "European paradox": Some notes on the dynamics of scientific and technological research in Europe

This paper discusses, first, the properties of scientific and technological knowledge and the institutions supporting its generation and its economic applications. The evidence continues to support the broad interpretation which we call the Stanford-Yale-Sussex synthesis. Second, such patterns bear important implications with respect to the so-called European Paradox, i.e. the conjecture that EU countries play a leading global role in terms of top-level scientific output, but lag behind in the ability of converting this strength into wealth-generating innovations. Some descriptive evidence shows that, contrary to the paradox conjecture, European weaknesses reside both in its system of scientific research and in a relatively weak industry. The final part of the work suggests a few normative implications: much less emphasis should be put on various types of networking and much more on policy measures aimed to both strengthen frontier research and strengthen European corporate actors.