Globalization, Economic Growth and Innovation Dynamics by Prof. Dr. Paul J. J. Welfens, Prof. John T. Addison, Prof.

By Prof. Dr. Paul J. J. Welfens, Prof. John T. Addison, Prof. Dr. David B. Audretsch, Prof. Thomas Gries, Dr. Hariolf Grupp (auth.)

In the recent worldwide financial system, extra international locations have spread out to overseas festival and quick capital flows. although, within the triad the method of globalization is quite uneven. With a emerging position of firm businesses there are favorable clients for larger international development and financial catching-up, respectively. Theoretical research indicates key components of sustained progress, yet there's additionally a brand new proposal of a long term equilibrium source of revenue hole during which convergence is quite not going. The research additionally selections up ecu and US exertions industry concerns within the context of financial globalization and increases the query of which european regulations within the box of work marketplace reform and of innovation rules are adequate.

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21 Globalization ofthe Economy and Increasing International Competition The increase in the premium for skilled workers at a time when the share of the workforce with higher qualifications has increased is not really controversial, but it is prima facie consistent with two different demand-side forces: industrial change on the one hand and technological change on the other. And this is where the controversy resides. Industrial/sectoral change would include such factors as heightened international trade and the growth of the service economy, while biased technological change reflects pervasive skill upgrading across all sectors resulting from an increase in skill complementarities and/or an increase in technological change.

Different tax regimes within the EU will, of course, remain a factor that could cause differences between rates of return across Euro countries. Higher intra-EU foreign direct investment will contribute to accelerated technology transfer within the Community. This in turn should stimulate real convergence of per capita productivity and per capita GDP in the Community. If this effect is strong enough to offset regional concentration effects emphasized in the new growth theory, there could be opportunities to reduce EU structural funds and to allocate a higher share ofthe EU budget to the promotion of R&D projects.

What holds for environmental rating of countries could also apply to social standards. Countries should be encouraged to introduce social standard labels which indicate the degree to which minimum levels in social security have been achieved. Assuming that consumers from rich countries are willing to pay more for a good from a country with a favorable rating the poorer countries will have some incentive to introduce some social protection. Consumers are, of course, free to ignore ecological rating or social rating results.

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