At the microeconomic level, the research and development costs are included in a broader category known as "discretionary costs", i.e. they are not mandatory and occur as a result of managerial decisions. At the macroeconomic level, research and development spending stimulates innovation and...

This paper analyzes factors shaping technological capabilities in United States and European countries, and shows that the differences between the two continents in this respect are much smaller than commonly assumed. The analysis demonstrates a tendency towards convergence in technological...

This paper surveys the recent history of Western European growth. It concludes that this experience has been disappointing and that further reforms are desirable in many countries. The requirement for reform comes both from achieving ‘close-to-frontier’ status and from the opportunities...