The paper aims to operationalize the concept of absorptive capacity (ACAP) into empirical indicators useful for the development of innovation policy at the level of countries and sectors. Applications are presented for 24 European countries and 24 UK sectors. The work centres around the...

The 2008 economic crisis has severely reduced the short-term willingness of firms to invest in innovation. But this reduction has not occurred uniformly and a few firms even increased their investment in spite of the adverse macroeconomic environment. This paper, based on the latest three waves...