Strategic RTD policy for regional catching up in the ERA. Stanisław Kubielas Warsaw University. Barcelona Target and the Era in an Enlarged Europe. Further falling behind Increasing regional divergence Dilemma – concentrate or diffuse RTD effort in the Era (duplication vs returns?)
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Barcelona objective can not be viewed purely as a supply push of diverting more resources to R&D. Any supply push has to be coupled with equal efforts to generate a demand pull for such R&D.
Solow paradox of decreasing returns to R&D for countries close to world technological frontier might be repeated in catching up countries with R&D effort not matched by corresponding increases of demand for that new technology.
The indirect cost of the Barcelona objective – that of creating the absorption framework conditions – might be much higher than raising R&D by 1%.