In the recent past, medium-term projections were given less attention than short-term analyses. However, things appear to have evolved and mid-term prospects seem to be enjoying a renewed interest. Since the outbreak of the financial crisis, many countries have been confronted with large imbalances in terms of high unemployment, unused production capacities or financial deficits. In the longer term, demographic changes, including population ageing, are likely to cause massive changes in the composition of GDP. Addressing these various challenges can only be considered in the context of medium- and long-term scenarios.
This working paper analyses the performances of the Walloon innovation system in 2010. It concentrates on the six dimensions of the innovation system: knowledge development, human resources, R&D valorisation, innovation absorption capacity, entrepreneurial skills and financing capacity. These pillars are assessed by comparing the Walloon performances with those of European countries and regions with a similar industrial heritage. The analysis underlines the good performances of the mobilisation of financial resources in favour of R&D activities but also a potential problem in terms of human resources available for these activities. Maintaining a sufficient flow of competence by new science graduates and engineers and by the implementation of lifelong learning remains the key challenge in the years to come.
A better understanding of productivity evolution requires a specially adapted statistical tool that allows an industry-based analysis of the fundamental trends of the economy. Therefore, the Federal Planning Bureau is working with other European institutions on a project, financed by the European Union’s sixth framework programme for research, to develop the EUKLEMS database.
The database EUKLEMS contains the variables for analysing the evolution of productivity at the industry-level from 1970 to 2007, for all European countries, Australia, Japan, Korea and the US. The last release of the database was realised in November 2009, for 32 industries. The available variables concern production, value added, intermediary consumption, employment and the skill level of the labour force, capital with a distinction between capital linked to information and communication technologies (ICT) or not. The growth contributions of both the different production factors and total factor productivity are also available. An update was carried out in March 2011; it provides a 72-industry breakdown of variables published in November 2009, for most countries.
This Working Paper deals with the estimation of direct, inter-industry domestic and international R&D stocks for 25 Belgian industries over the period 1995-2007. Two categories of stocks are constructed to estimate potential rent spillovers and knowledge spillovers. Domestic inter-industry and foreign R&D stocks are weighted with Supply and Use tables and bilateral trade data to estimate rent spillovers (through intermediate consumption) and with international patent citations matrices to estimate knowledge spillovers.
In this Working Paper the growth in industry-level total factor productivity, i.e. the part of output growth that cannot be accounted for by growth in the production factors, is decomposed using Belgian firm-level data for the period 2000-2008. Decomposition permits to assess to what extent productivity growth in a given industry results from changes in firm-level productivity, from reallocation of market shares between existing firms or from firm entry and exit.