THE INEVITABLE LIMITS OF EU RESEARCH-AND-DEVELOPMENT FUNDING

The experience of the past 40 years in national policies for-and Europ ean cooperation in-science and technology points to clear conclusions about EU policies. First, the prevailing notions of technology gaps be tween Europe and Japan and the USA-notions which have been a driving f orce in the EU policy for research and technology-have been exaggerate d. However, real gaps exist amongst the EU member-countries themselves . Secondly, it is unrealistic to expect EU funded R&D programmes by th emselves to make a substantial difference to the rate and direction of technical change in Europe. However, EU policies for competition and other forms of regulation, trade and investment can have a major influ ence on corporate decisions about technical change. It is important fo r EU innovation policy to promote favourable framework conditions with in which business firms are encouraged to improve their technological and related organisational practices. (C) 1998 Elsevier Science B.V. A ll rights reserved.