Work Package 5 – Calibration of micro-economic effects

By ,

Participants: Bruegel, KU Leuven, UNIMAAS-Merit, Imperial, IER

Within the EU2020 and the Innovation Union perspective, a new breed of innovation policies is being developed in Europe which addresses specific grand challenges and takes a broader perspective of targeting beyond innovation and competitiveness, smart growth which is also sustainable and socially inclusive. The difficult budget positions of European governments calls for efficient use of public funding and asks for more evidence-based policy design and the use of state-of-the-art ex-ante and ex-post socio-economic impact assessment.

Macro-models typically used for ex ante impact assessments of innovation policies need to be adapted to this new kind of innovation policies. In this endeavour, applied macro-models are particularly looking for inputs from the micro-analysis in the following areas:

  1. to which extent can public instruments leverage private innovative investments (“additionality”)
  2. how important are the drivers and barriers in the markets for innovation for incentivising investments
  3. how does innovation affect beyond growth also other social dimensions
  4.  how different are new green technologies compared to other technologies?
  5. how strong are the mechanisms of technology diffusion across sectors and across countries and regions?

The objective of this work package is to translate the results from own micro-analysis performed in SIMPATIC into transferable input for macro-modelling.