Development of new approaches to the macroeconomic modelling of research and innovation

Existing macroeconomic models still fall short in providing sound ex-ante estimates of the various impacts of R&I. Therefore, the European Commission has engaged in a medium- to long-term agenda to improve the treatment of research and innovation (R&I) in macroeconomic models by supporting and financing cutting edge research on macroeconomic modelling able to attract the best researchers to work and develop new models capable of supporting the rising demand for policy evaluation tools in the EU. This agenda started in 2014 following the Commission Communication ""Research and innovation as sources of renewed growth"". The Council of the European Union called on the Commission to promote further research to build the evidence base for R&I policy making and for budgetary decision making, including by further improving the way R&I is accounted for in macro-economic models.

On the one hand, R&I are acknowledged as key engines for long-term growth and societal prosperity by an extensive