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Strategic interactions in public R&D across European countries: a spatial econometric analysis

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posted on 2023-06-08, 16:43 authored by Hakim Hammadou, Sonia Paty, Maria SavonaMaria Savona
The paper adds to the existing literature on the determinants of government spending in Research and Development (R&D) by considering the role of strategic interactions among countries as one of the possible competing explanations, within a spatial econometric framework. We account for several factors affecting national levels of public R&D spending, including (i) the international context – i.e. Lisbon strategy; (ii) country characteristics – level of private R&D, GDP, trade openness and the National System of Innovation; (iii) countries’ similarities in relation to (a) trade and economic size and (b) sectoral specialization. The analysis is carried out on 14 European countries. First, we find that factors traditionally affecting the level of public R&D expenditure, such as the scale of the national economy, trade openness, sectoral specialization and private R&D, significantly influence the level of public R&D in European countries between 1994 and 2006. Interestingly, the introduction of the Lisbon strategy does not seem to have affected changes in the levels of public R&D spending. Second, by using different weight matrices, we confirm the existence of strategic interactions in relation to R&D spending among European countries with similar economic, international trade and sectoral structure characteristics, though not geographically close.

History

Publication status

  • Published

File Version

  • Published version

Journal

Research Policy

ISSN

0048-7333

Publisher

Elsevier

Issue

7

Volume

43

Page range

1217-1226

Department affiliated with

  • SPRU - Science Policy Research Unit Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2014-02-17

First Open Access (FOA) Date

2016-03-22

First Compliant Deposit (FCD) Date

2016-11-16

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