Download PDF by Edward Lorenz, Bengt-Åke Lundvall: How Europe's Economies Learn: Coordinating Competing Models

By Edward Lorenz, Bengt-Åke Lundvall

Whilst trying to bench mark the functionality of eu economies, commentators frequently search for comparability the economies of Japan and the USA. How Europe's Economies examine indicates how this can be heavily deceptive and wishes to be complemented with an knowing of the basic adjustments among Europe's economies.

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3 presents some distinctive characteristics (averaged over firms and industries) of foreign firms and domestic firms for total manufacturing in Belgium in 1995. In line with results for other countries (see for an overview Dunning, 1993; Caves, 1996) the average foreign affiliate in Belgian manufacturing is found to be older, larger, more capital intensive, more labour productive than the average domestic firm. Foreign firms, on average, also employ a higher educated labour force and pay higher wages relative to their domestic competitors.

This volume intends to fill that gap. Introduction 21 Acknowledgements The initiative of this volume came from within the Federal Science Policy Office of Belgium in the build-up to an OECD conference on the internationalisation of R&D to be held in March 2005. Thanks to Philippe Mettens and Ward Ziarko for their support from the onset of this book project. As usual, the contributors are to be held responsible for the appearance of the book. To them belongs the primary credit for the volume, and we hope their competence and know how 'spills over' to many interested readers, as it did to the editors.

Globerman et. al, 1994; Doms and Jensen 1998). In a related study (De Backer and Sleuwaegen 2004) we have analysed in closer detail the productivity differences between foreign firms and domestic firms in Belgium by additionally studying the effects of scale and (technical) efficiency on the productivity advantage of foreign subsidiaries and explicitly controlling for industry and firm differences between both groups of firms. We found significant differences in productivity between foreign subsidiaries (FORMNE) and domestically owned firms, that still exist after controlling for industry differences (controlled for by industry dummies).

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