Structural stability of the research & development sector in European economies despite the economic crisis

Abstract

When an external shock such as the economic crisis in 2008/2009 occurs, the interconnectedness of sectors can be affected. This paper investigates whether the R&D sector experienced changes in its sectoral integration through the recession. Based on an input output analysis, it can be shown that the linkages of the R&D sector with other sectors remain stable. In some countries, the inter-sectoral integration become even stronger. Policy makers can be encouraged to use public R&D spending as a means of fiscal policy against an economic crisis.