In 2000, the European Council set its sights on becoming the world’s top knowledge-based economy. To that end, they aimed to achieve a goal of spending 3% of GDP on research and development by 2010. Their Lisbon Strategy recommended a number of efforts on the European Union and national...

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 inappropriate...