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"R&D Subsidies in the European Union - A Competitiveness Issue for U.S. Firms?"

Wallace, Anthony H. (1995) "R&D Subsidies in the European Union - A Competitiveness Issue for U.S. Firms?". In: UNSPECIFIED, Charleston, South Carolina. (Unpublished)

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    Abstract

    This paper examines European public research and development (R&D) subsidies that support precompetitive development (PCD), which is R&D up to and including a prototype. The research seeks to determine How effective these subsidies have been and whether European practice has been influenced by the recent change in GATT (General Agreement on Tariffs and Trade) subsidy language and by the current controversy over R&D subsidies in the U.S. The paper examines the European Union (EU) Framework Programs, the EUREKA program, and the French and German programs of direct subsidy to industries. The conclusion of this preliminary examination is that there is little evidence that current European support to PCD threatens American competitiveness. With very few exceptions, European programs do not go beyond prototype, and there is no evidence of a change in policy as a result of the recent GATT agreement on subsidies signed last year. Budget constraints prevent the EU and member states from supporting the expensive prototype-to-commercialization stage of the innovation process. While European programs have generally not been successful at bringing new products to market, they have provided numerous secondary benefits. These benefits include diffusion of knowledge, development of cross-border and vertical collaborations, and improvement of university-industry links. The U.S. could learn some useful lessons from the European experience.

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    Item Type: Conference or Workshop Item (UNSPECIFIED)
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > RTD policy/European Research Area
    Countries > France
    Countries > Germany
    EU policies and themes > External relations > EU-US
    EU policies and themes > Policies & related activities > competition policy
    EU policies and themes > Policies & related activities > economic and financial affairs > business/private economic activity
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Conference: European Union Studies Association (EUSA) > Biennial Conference > 1995 (4th), May 11-14, 1995
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 11 Apr 2007
    Page Range: p. 10
    Last Modified: 15 Feb 2011 17:45
    URI: http://aei.pitt.edu/id/eprint/7029

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