Author(s): Debora Revoltella, Tim Bending, Christoph Weiss and Philipp-Bastian Brutscher
Date published: Feb 2019
SUERF Policy Note, Issue 57
by Debora Revoltella, Tim Bending, Christoph Weiss and Philipp-Bastian Brutscher
European Investment Bank
JEL-codes: D24; E22; G30.
Keywords: Innovation, digitalisation, intangible investment, investment finance.
The EU is losing ground on innovation, in comparison with peer economies such as the US, China and Japan. This is revealed not just by weaker spending on R&D, but also by lower business investment in intangibles, and a declining presence among top global innovating companies. While EU firms are advancing in terms of the adoption of digital technologies, in the service sector they lag firms in the US, reflecting certain structural barriers in the European context. One of these is finance, with conditions improving overall, but remaining ill-suited to supporting innovation and digitalisation, particularly as regards the underdevelopment of equity financing. These are some of the key findings of the EIB Investment Report 2018/2019, which draws on the EIB Investment Survey of firms across Europe, and a unique survey on digitalisation and skills in Europe and the US in 2018.
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