R&D and the financing of innovation in Europe. Stimulating R&D, innovation and growth (Vol.1) / Financing innovative firms (Vol.2)

Research and development and innovation are key drivers of economic growth and prosperity. European policymakers have long acknowledged their importance and, under the Lisbon Agenda, have set the objective of raising R&D expenditure to 3% of GDP. The operations of the European Investment Bank and its venture capital arm, the European Investment Fund, need to be seen in this context. In fact, a non-negligible portion of the EIB Group’s finance is directed at the knowledge economy. In 2009, finance in support of research and development, innovation, and education and training amountedto €14.5 billion, representing some 20% of the finance provided by the EIB Group.

To foster its impact on R&D, innovation, and growth, it is key that the Bank closely follow the debate on R&D and innovation and how they contribute to economic growth. More specifically, the Bank must have a sound understanding of why investing in R&D and innovation is crucial, what drives such investment, what hinders it, and how possible roadblocks could be removed.

The contributions to this volume of the EIB Papers aim at addressing these questions. Drawing on presentations made at the 2009 EIB Conference in Economics and Finance, the contributions approach the topic at hand from three perspectives - macroeconomic, microeconomic and financing of innovation.