Trend Growth of the knowledge economy amid Europe's innovation gap

Summary

The report observes that countries increasingly build knowledge and innovation ecosystems that tie together universities, research institutes, private R&D centres and multinationals. The Dutch economy keeps moving toward high-value services and knowledge work, a shift reinforced by the rising education level of the population. Reports commissioned by the European Commission, however, judge that the EU structurally falls short in converting its strong knowledge base into economic value. Investment rates far below those of China and the US hold back the pace of innovation and productivity growth, while a fragmented market, scarce risk capital and protective but slow regulation hinder commercialisation. Knowledge-intensive jobs are growing in the EU, but a shortage of Europeans with the right skills forms a structural bottleneck. In response the EU is preparing a single set of company rules under a so-called '28th legal regime' to make doing business across the Union easier.