Science-Technology-Industry Links and the 'European Paradox' : Some Notes on the Dynamics of Scientific and Technological Research in Europe

The so-called "European Paradox" holdsthat European Union countries play a leading global role in terms of high-levelscientific output, but lag behind in their ability to convert this strengthinto wealth-generating innovations. This study argues that the paradox isincorrect and hence, that the European Union policies based on this mistakenpremise are misguided. As a framework, the paper examines the properties of scientific andtechnological knowledge and the institutions that support its creation andeconomic application. It also suggests that the evidence still supports thebroad interpretation called the "Stanford-Yale-Sussex" synthesis andthe continuing effectiveness of open science institutional arrangements. Examination of European comparative performance in terms of scientificoutput, proxies for technological innovation, and production and export inthose firms that rely on scientific advances suggests the paradox does notexist. There is little evidence of a "European excellence," based onanalysis of patenting activity, R&D expenditures, and a range ofbibliometric measures of scientific strength. At the same time, one findsevidence of widespread European corporate weakness - as demonstrated, e.g., bytrade performance andshares of international production in high-techindustries. Belief in this paradox has led to a situation where European Unionsupport to basic research is virtually non-existent. This correction of the accuracy of the "European Paradox" leads tosuggestions about European Union policy--e.g., less emphasis should be put onvarious types of networking, and more emphasis on strengthening"frontier" research and strengthening corporate actors. (TNM)