Policy assessments with NEMESIS using the model developments realised in SIMPATIC

By , Private company and team of Ecole Centrale Paris.

This paper presents the results of ex-ante R&I policy assessments for European Union realized with the new comprehensive and operational tools produced by the SIMPATIC project. These new tools represent crucial improvements of the methodology used to describe Research and Innovation activities in the NEMESIS
model, that was deeply reshaped (see deliverables D9.1 and D9.5). The main improvement relies on the extension of innovative inputs in the innovation function by including, besides public and private R&D investments, investments in ICT (from EU-KLEMS database) and investments in Other Intangibles (from INTAN-INVEST database). The main purposes of these modi cations consist (i) in considering innovative activities in a broader sense than pure R&D, by taking also into account expenditures in other intangibles assets, notably software and training, and (ii) in considering ICT as General Purpose Technologies, notably by including them in the innovation function in order to re ect their enabling feature (Bresnahan and Trajtenberg, 1995 [1]; Lipsey et al., 2006 [15]). This is, at our knowledge, the fi rst attempt of such improvement in a large scale macro-sectoral model.