Publication

This report argues that the weakness of R&D and the slow accumulation of knowledge in the EU is probably a major reason why Europe has failed to match US productivity performance during recent decades. But the emphasis of the Barcelona Council on the spending target for R&D could be misplaced as the question is not so much one of increasing the level but rather of enhancing the efficiency of R&D in Europe. Thus it is important to understand how countries compare in their abilities to encourage greater levels of knowledge and ask why the countries vary in their abilities to turn R&D into innovative and commercial products through the creation of new, successful companies (and consequently more employment).