Community Research and Development Information Service - CORDIS

Abstract

INNOVPROD was a research network across 11 institutions in Europe between 1996-99. Researchers focused on the links between R&D, innovation and productivity. The approach was mainly empirical and micro-economic. Large databases of comparable cross country information on innovation were a key resource developed and analysed by the Network. There were 14 workshops and conferences over the time period. Details of these and associated papers can be found on our Website at www.ifs.org.uk under "research interests".
The key findings (and policy implications are) are:
1. New technologies have significantly increased the demand for skills. Failure of the supply side to keep up has led to inequality of job opportunities and wages. A policy of increasing education and training will reduce inequality and stimulate innovation. Nevertheless, the bulk of the increase in European unemployment is probably not due to mismatch of skills.
2. Using new technologies does not cause workers to have higher wages. There is a correlation between earnings and computer use, but it is because better workers are given better quality technologies.
3. There is no clear correlation between new technologies and job creation at the firm level. Even if there was, this does not justify policies to deal with unemployment by stimulating innovation.
4. Direct government subsidies to private sector R&D are undesirable - they do little to raise measured productivity
5. R&D tax credits stimulate more R&D, but a lot is through relocation of R&D labs from different countries
6. Product market competition stimulates faster innovation. Tough competition policies and removal of regulatory constraints is one of best ways of encouraging innovation
7. Research Joint Ventures are generally desirable but policies should encourage full information sharing.

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Record Number: 6697 / Last updated on: 2005-01-21
Category: PROJ