New EC Study Calls For More Public Investment in R&I
Public funding of research and innovation (R&I) acts as a catalyst to boost private R&I activities and overall economic growth, according to a report released by the European Commission.
The study finds that roughly two thirds of economic growth in Europe can be traced back to innovation. It also estimates that the typical returns for private R&I investment range between 10% and 30%. These returns can be twice or three times higher for the economy in general, thanks to the positive spillover effects that enable other firms to benefit from these investments.
Public R&I investment helps generate and diffuse new knowledge. It also contributes to developing new skills and creating networks that enable stronger knowledge flows. Overall, the returns on public R&I investment are estimated to be around 20%, with returns on EU-funded R&I estimated to be even higher.