The Role of Regional Innovation Systems (RIS) in Translating R&D Investments into Economic and Employment Growth

Ricardo Filipe Ferreira Moutinho, Manuel Au-Yong-Oliveira, Arnaldo Coelho, José Pires Manso

Abstract


The emergence of the so-called “European Paradox” shows that increasing Governmental R&D Investment is far from being a ‘panacea’ for stagnant growth. It is worth noting that Governmental R&D Investment does not have a statistically significant impact on employment, indicating the need to assess the trade-offs of policies that could lead to significant increases in government expenditure. Surprisingly, Governmental R&D Employment does not contribute to ‘mass-market’ employment, despite its quite important role in reducing Youth-Unemployment. Despite the negative side-effects of Governmental R&D Employment on both GVA and GDP, University R&D Employment appears to have a quite important role in reducing Unemployment, especially Youth-Unemployment, while it also does not have a downside in terms of economic growth. Technological Capacity enhancement is the most effective instrument for reducing Unemployment and is a policy without any downside regarding sustainable economic development.

Keywords


innovation management; regional innovation systems; economic policy; R&D policy

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DOI: http://dx.doi.org/10.4067/S0718-27242015000200002



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