Innovation, productivity and the EU Lisbon Agenda

Intute: Economics brings you the latest policy analysis from the Centre for Economic Performance at the LSE, comparing innovation and productivity in the US and the EU.

The United States still has significantly higher productivity than the European Union (EU) average – GDP per hour over 15% higher, and GDP per capita over 30% higher. How can the EU improve its position relative to the United States? A new CEP Policy Analysis looks at the main driver of productivity growth: innovation. The findings include:

* Since the mid 1990’s US productivity growth has been faster than in Europe
* EU members have failed to liberalise their product and labour markets
* The Barcelona target of 3% of GDP on R&D by 2010 is flawed
* European firms should be able to patent their innovations at lower costs
* The brain drain from Europe to the US is still a significant factor

Researchers look to find out more about the Lisbon Agenda, could try the EU Economics section of Intute: Economics