Politique d'innovation : L'Europe ou les Etats membres?[en] 

Europe’s sluggish growth, when compared to the US or Asian states like China and India, has led to debate over how best to stimulate European growth. Innovation is increasingly seen as the answer. At the moment, national governments spend about €65 billion per year on public research and the European Commission about €8 billion. The authors question whether these sums are being correctly allocated between national and EU levels.

Innovation policy covers many areas including public research and development (R&D), public funding of private R&D, small- and medium-sized enterprises (SMEs), entrepreneurship and venture capital, and policies dealing with intellectual property rights (IPRs) and standards.  

For each of these areas, the paper assesses whether action is most appropriate at the EU-level or the national level. Economies of scale and external effects would support coordination of innovation policy at the EU level, whereas national policies are to be preferred in cases with strong heterogeneity in objectives, preferences or economic structure.

The authors conclude that a European innovation policy could have, or already has, substantial benefits over purely national policy in these areas. However, with respect to innovation policies targeted at SMEs, no economies of scale or external effects are found. Thus it is concluded that, in this case, such policies are best conducted at the national level.