Why is it that European firms are less present as leading innovators in new ICT sectors? The most common factor raised in the literature to explain the differences in dynamic structure between the US and the EU is a greater willingness on the part of the US financial markets to fund projects in...

Innovation in the European Union remains weak according to a number of key ‘input’ indicators, especially R&D investment by the business sector, and there are relatively few signs of progress. From a firm-level perspective, Europe’s innovation gap relative to the US results from an...