Publication

This policy brief argues that the question of research and development spending in Europe is not so much one of increasing the level but rather of enhancing efficiency. Further, actively subsidising investment by venture capitalists may not necessarily deliver the desired results, as a large part of European venture capital finds it way to the US capital market and thus does not necessarily benefit innovation in Europe. Consequently, policy measures aimed at enhancing the efficiency and productivity of research and development in Europe should focus on the level of knowledge of workers and the capacity of entrepreneurs to translate scientific excellence into viable technological innovation.