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

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  • Hakim Hammadou

    (EQUIPPE - Economie Quantitative, Intégration, Politiques Publiques et Econométrie - Université de Lille, Sciences et Technologies - Université de Lille, Sciences Humaines et Sociales - PRES Université Lille Nord de France - Université de Lille, Droit et Santé)

  • Sonia Paty

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Maria Savona

    (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

Abstract

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.
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Suggested Citation

  • Hakim Hammadou & Sonia Paty & Maria Savona, 2014. "Strategic interactions in public R&D across European countries : A spatial econometric analysis," Post-Print halshs-00958038, HAL.
    • Handle: RePEc:hal:journl:halshs-00958038
    DOI: 10.1016/j.respol.2014.01.011
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00958038v1
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    3. Thomas H. W. Ziesemer, 2022. "Foreign R&D spillovers to the USA and strategic reactions," Applied Economics, Taylor & Francis Journals, vol. 54(37), pages 4274-4291, August.
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    8. Argyropoulou, Maria & Soderquist, Klas Eric & Ioannou, George, 2019. "Getting out of the European Paradox trap: Making European research agile and challenge driven," European Management Journal, Elsevier, vol. 37(1), pages 1-5.

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    More about this item

    Keywords

    Public R&D expenditures; National Systems of Innovation; complementarity public and private R&D; spatial interactions; EU countries; spatial dynamic panel data;
    All these keywords.

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies

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