Several reviews and impact assessment studies have concluded that the Sixth Framework Programme for Research and Technological Development (FP6) succeeded in fostering scientific excellence and attracting the “A Team” in public science. However, these studies typically fail to contrast their...

This paper investigates the causal relationship between firms' research and development expenditures (R&D) and their investments into fixed capital. The literature provides two contrasting views in this respect. The first view holds that a firm's research activity causes, via the creation of...