Thirdly, the decades and the root of the problem lies in EU market exhibits slower business creation deeper structural issues within the European and destruction compared to the US. [...] It is common practice to assess countries’ relative successes of innovation through the lens of innovation inputs, in the form of Research and development (R&D) expenditure and the number of people performing research activities, and innovation outputs, in the form of the number of technological patents. [...] A proxy for business dynamism and the ability of the market to channel capital and labour from lower to higher productivity companies is the churn rate, which is the sum of the rate at which firms enter (birth rate) and exit (death rate) the market. [...] The target of spending 3 percent of GDP on R&D reflected the profile of the economy in the 1990s, but since then the role of knowledge, human capital, and scientific discovery in the economy has become much bigger. [...] The final recommendation is to make the EU the most thriving and competitive market in the world.
- Pages
- 23
- Published in
- Belgium
