The race for technological leadership

Innovation is key for economic growth. Many economists agree on this point. Although the link between innovation and growth is unclear, it appear that a specific expertise is an undeniable comparative advantage for a country. This is why research and development is at the heart of economic policies in many countries. Recently we heard in France, for example, that the country must become the leader in green hydrogen, an energy of the future.
The countries which devote a significant part of their GDP to R&D are Israel and South Korea. Northern Europe is not far behind while Southern Europe is quite late, especially Spain.

If we look at this “investment rate” over time we see a rise for the United States (while its Canadian neighbor is declining) and something important to notice: China has just overtaken Europe.

20 October 2021

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