The meltdown in EU companies’ competitiveness was directly related to their need for more innovation. Large European companies, the IMF found, invested significantly less in research and development than their US counterparts.
According to a new report by the International Monetary Fund, Europe’s economy has been languishing and losing more ground each year in a productivity race with the US and China.
The meltdown in EU companies’ competitiveness was directly related to their need for more innovation. Large European companies, the IMF found, invested significantly less in research and development than their US counterparts.
The technology sector exemplified this trend: over the last 20 years, investment by US firms grew by 40 per cent, while investment by European firms remained stagnant.