PART TWO POLICIES FOR ADJUSTMENT AND GROWTH
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1 PART TWO ICIES FOR ADJUSTMENT AND GROWTH
2 Economic Survey of Europe, 22 No. 1 CHAPTER 4 TECHNOLOGICAL ACTIVITY IN THE ECE REGION DURING THE 199s While the task of estimating the contribution of technical change to economic growth is fraught with difficulty, there is a clear positive relationship for the ECE region as a whole between variables such as the share of hightech products in total exports and of educational expenditure and attainment levels on the one hand, and levels of GDP per head on the other. There is also a marked tendency in the developed industrial economies for gross expenditure on R&D (GERD) to increase over time as GDP increases. The relationship between GERD and GDP is obscured in the case of the transition economies by the fact that in the late communist period GERD was largely devoted (military purposes apart) to the maintenance of networks of research institutes, which made little or no contribution to economic development. The restructuring of these networks is still going on. As a result, formal R&D provided few inputs into the economic recovery recorded in the CEECs from the mid-199s, and continues to weigh on the CIS countries as a dead weight loss rather than a source of benefits. R&D policy for the transition countries has to be developed against that specific background. Effective R&D policy may require further cuts in formal, public sector R&D expenditure, and should in any case be focused on developing the private sector s capacity to assimilate new technology, maximizing the technological impact of FDI, and helping to build supply networks as vehicles for technological upgrading. 4.1 Introduction 4.2 Convergence and divergence in per capita income levels in the 199s
3 Technological Activity in the ECE Region During the 199s CHART Real GDP per capita in current PPPs in the ECE region, 1993 and 2 (United States=1) Luxembourg United States Norway Iceland Ireland Switzerland Canada Denmark Belgium Austria Japan Netherlands Germany Finland France Sweden Euro area Italy United Kingdom Spain Cyprus Israel Slovenia Portugal Greece Malta Czech Republic Hungary Slovakia Estonia Poland Russian Federation Croatia Belarus Lithuania Turkey Latvia Romania Kazakhstan Bulgaria The FYR of Macedonia Turkmenistan Ukraine Albania Azerbaijan Kyrgyzstan Armenia Uzbekistan Georgia Republic of Moldova Tajikistan Source: UNECE calculation, based on World Bank, World Development Indicators (Washington, D.C.), 22. Note: The relative position of countries in 1993 is shown by the solid lines (see text).
4 Economic Survey of Europe, 22 No Education and technological learning CHART Public expenditure per secondary student in relation to GDP per capita in the ECE region, y =.257x R 2 =.7944 LUX Public expenditure per secondary student (PPP dollars) LTU EST UZB 1 KGZ ALB TUR ROM ARM BLR UKR CYP ISR CZE GRC HUN Source: UNECE calculation, based on World Bank, World Development Indicators (Washington, D.C.), 22. CHART Public expenditure per tertiary student in relation to GDP per capita in the ECE region, y =.3746x R 2 =.6491 Public expenditure per secondary student (PPP dollars) MDA KGZ ARM AZE CZE HUN SVK TUR EST GRC LTU ROM BGR BLR KAZ UKR ISR CAN CYP Source: UNECE calculation, based on World Bank, World Development Indicators (Washington, D.C.), 22.
5 Technological Activity in the ECE Region During the 199s 4.4 R&D activity in the ECE region during the 199s CHART Real GDP and GERD growth rates in the European Union and the United States, United States GDP EU GDP United States GERD EU GERD Per cent Source: UNECE calculation, based on Eurostat, New Cronos Database; OECD, Main Science and Technology Indicators, Vol. 21, Issue 2 (Paris), 21; UNECE Common Database. CHART Real GDP and GERD growth rates in Hungary, -2 2 Hungary GDP Hungary GERD 1 Per cent Source: UNECE calculation, based on OECD, Main Science and Technology Indicators, Vol. 21, Issue 2 (Paris), 21 and UNECE Common Database.
6 Economic Survey of Europe, 22 No. 1 CHART Research intensity and GDP per capita in the UNECE region, and y = 8E-5x R 2 =.761 R&D intensity UKR CZE BLR 1. HRV RUS EST SVK HUN MDA BGR TUR AZE LTU GRC.5 GEO UZB ARM MKD ROM KGZ KAZ TJK. TKM CAN Source: UNECE calculation, based on OECD, Main Science and Technology Indicators, Vol. 21, Issue 2 (Paris), 21 and UNECE Common Database. CHART Researchers per thousand of the labour force and GDP per capita in the ECE region, and y =.2x R 2 = Researchers per thousand labour force RUS GEO EST 6 CAN HRV 5 UKR BLR 4 BGR LTU GRC ARM SVK 3 AZE MKD HUN CZE MDA 2 ROM TJK UZB KAZ 1 KGZ TUR TKM Source: As for chart 4.4.3
7 Technological Activity in the ECE Region During the 199s 4.5 Inventive activity in the ECE region CHART Resident patents per million of the population and per capita GDP in the ECE region, average 4 y =.72x R 2 =.4757 Resident patents per million population 3 2 HUN 1 KGZ ROM CZE CAN UKR BLR RUS UZB HRV GRC BUL ARM MKD SVK LTU AZE TUR EST Source: UNECE calculation, based on World Bank, World Development Indicators (Washington, D.C.), 22 and OECD, Main Science and Technology Indicators, Vol. 21, Issue 2 (Paris), 21.
8 Economic Survey of Europe, 22 No Innovative activity in Europe CHART Manufacturing innovation and per capita GDP in Europe, y =.1x R 2 =.244 Share of innovating firms 6 4 ROM LTU Source: UNECE calculation, based on World Bank, World Development Indicators (Washington, D.C.), 22 and Eurostat, New Cronos Database. CHART Manufacturing innovation and R&D intensity in Europe, y = x R 2 =.1584 Share of innovating firms 6 4 ROM LTU R&D intensity Source: UNECE calculation, based on OECD, Main Science and Technology Indicators, Vol. 21, Issue 2 (Paris), 21 and Eurostat, New Cronos Database.
9 Technological Activity in the ECE Region During the 199s 4.7 International technology transfer and domestic spillovers in eastern Europe CHART High-technology imports and per capita GDP in the ECE region, y =.2x R 2 =.276 High technology imports as a percentage of GDP HUN CZE SVK TUR GRC CAN DEN LUX Source: UNECE calculation, based on World Bank, World Development Indicators (Washington, D.C.), 22 and OECD, Main Science and Technology Indicators, Vol. 21, Issue 2 (Paris), Is there a role for science and technology policy?
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