Previous Fora / 2003
Speakers
Knowledge, Science and Economic growth: A European Perspective
(Abstract of a speech at the World Science Forum - Budapest, by Professor
Alexandre Lamfalussy, University of Louvain (UCL), Institut d'études européennes,
Louvain-la-Neuve, Belgium)
Professor Alexandre Lámfalussy
First President, European Monetary Institute
Abstract
I shall start by voicing my strong belief (1) that the correction of Europe's dismal growth performance since the mid-1990s should be regarded as our prime policy objective and (2) that one of the most important means of achieving this objective should be the promotion of a knowledge - based economy.
My remarks will be in three parts.
First, I shall stress the major differences which emerged during the past eight years between the growth performance of the United States and that of Europe - in stark contrast with the earlier post-war experience - and outline the consequences of this fact. A number of factors have been responsible for these differences, but there can be little doubt that the decline in the rate of growth of labour productivity in Europe (as opposed to its increase in the US) played a major role in this respect. This in turn to a large extent explains Europe's inability to push out the "growth frontier" via a vigorous flow of innovations.
Second, I shall give some thought to the courses of action which could speed up the process of innovations: radical improvement of education at all levels; stimulation of R & D by using appropriate tax incentives; ensuring "open entry"; treating with care the difficult issue of intellectual property protection; and last but not least investment friendly macro and micro policies.
Third, assuming (perhaps heroically) that appropriate policy measures are being undertaken, and begin to yield results, I propose to address some of the challenges that are likely to be raised by a genuinely knowledge - based economy. Such challenges have already been emerging in the interaction between contemporary finance theory and developments in the financial industry and financial markets.
A.Lamfalussy