Skip to main content

Framework for the Analysis of Research and Adoption Activities and their Macroeconomic Effects

Objective

FRAME will develop a new generation of Dynamic Stochastic General Equilibrium (DSGE) models that will advance the state of the art by allowing for the first time realistic estimates of the impact of public research and innovation activities on innovation, productivity growth and unemployment.
FRAME will begin by constructing a baseline model,which can be extended to address different policy issues. The baseline DSGE model incorporates important new features: it distinguishes between investment by companies in R&D and their investment in technology adoption; it allows public R&D and innovation activities not only to enhance the productivity of private R&D but also to facilitate the diffusion of technologies to private companies. FRAME will extend this baseline model to allow: multiple sectors; multiple countries; endogenous skills; and labour markets with search frictions and unemployment. These extensions allow us to investigate the effects of different policy interventions over the short, medium and long term.
In addition to developing new models, FRAME will explore new approaches to estimate key model parameters, including: the elasticities of innovation with respect to private and public R&D; adoption lags; the elasticity of the speed of diffusion with respect to private adoption expenditures; and the elasticity of adoption with respect to public activities aimed at fostering the diffusion of new technologies to private companies. This last parameter will be estimated using a unique dataset combining information from firms on the introduction of new products with data on research contracts they have signed with the Fraunhofer Society. Public research and innovation activities have played a critical role in technological progress, yet we have little quantitative knowledge about their impact. FRAME will fill this gap and provide policymakers with a more realistic framework to study the impact of innovation policies and institutions on a broader range of variables.

Field of science

  • /social sciences/economics and business/business and management/commerce
  • /social sciences/economics and business/business and management/employment
  • /social sciences/economics and business/economics/production economics/productivity

Call for proposal

H2020-SC6-CO-CREATION-2016-1
See other projects for this call

Funding Scheme

RIA - Research and Innovation action

Coordinator

ZEW - LEIBNIZ-ZENTRUM FUR EUROPAISCHE WIRTSCHAFTSFORSCHUNG GMBH MANNHEIM
Address
L 71, 1
68161 Mannheim
Germany
Activity type
Research Organisations
EU contribution
€ 332 009,38

Participants (5)

THE CENTRE FOR ECONOMIC POLICY RESEARCH
United Kingdom
EU contribution
€ 512 232,98
Address
33 2Nd Floor 33 Great Sutton Street
EC1V 0DX London
Activity type
Research Organisations
LUNDS UNIVERSITET
Sweden
EU contribution
€ 189 131,79
Address
Paradisgatan 5C
22100 Lund
Activity type
Higher or Secondary Education Establishments
UNIVERSITA COMMERCIALE LUIGI BOCCONI
Italy
EU contribution
€ 165 072,50
Address
Via Sarfatti 25
20136 Milano
Activity type
Higher or Secondary Education Establishments
UNIVERSIDAD POMPEU FABRA
Spain
EU contribution
€ 100 255
Address
Placa De La Merce, 10-12
08002 Barcelona
Activity type
Higher or Secondary Education Establishments
LONDON BUSINESS SCHOOL
United Kingdom
EU contribution
€ 173 201,25
Address
Regent S Park
NW1 4SA London
Activity type
Higher or Secondary Education Establishments