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The Two Disjointed Faces of R&D and the Productivity Gap in Europe

Bruno, RL; Douarin, E; Korosteleva, J; Radosevic, S; (2021) The Two Disjointed Faces of R&D and the Productivity Gap in Europe. Journal of Common Market Studies 10.1111/jcms.13260. (In press). Green open access

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This paper explores the determinants of productivity gaps within the European Union in computing, chemicals, basic metals and food manufacturing – four sectors that vary in terms of the intensity of sectoral R&D. Our analysis reveals that the main causes of these productivity gaps are intensity of unembodied or disembodied R&D activity and R&D embodied in purchased equipment and machinery, and their interplay. While disembodied and embodied R&D are both associated positively to closing productivity gaps, the interaction between the two does not have the same effect. There is no complementarity between these technology acquisition modes, despite both disembodied and embodied technology are crucial for productivity catch up. In a policy context, this suggests possible lack of coordination between R&D policy and technology transfer (that is, foreign direct investment, trade and industrial policy). We show, also, that the productivity gap between ‘peripheral’ (southern and eastern) and ‘north’ EU countries is widening.

Type: Article
Title: The Two Disjointed Faces of R&D and the Productivity Gap in Europe
Open access status: An open access version is available from UCL Discovery
DOI: 10.1111/jcms.13260
Publisher version: https://doi.org/10.1111/jcms.13260
Language: English
Additional information: Copyright © 2021 The Authors. JCMS: Journal of Common Market Studies published by University Association for Contemporary European Studies and John Wiley & Sons Ltd. This is an open access article under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Keywords: productivity; technology gap; multi-level analysis; European Union
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > SSEES
URI: https://discovery.ucl.ac.uk/id/eprint/10130270
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