The Europe 2020 research and development target : a small state perspective

Abstract

One of the European Union (EU)’s goals is to create a sustainable and inclusive economy across all the member states. The current strategy for the period between the years 2010 and 2020 is the ‘Europe 2020 strategy’ which aims to achieve a union based on smart, sustainable and inclusive growth. One of the targets of this strategy is the Research and Development (R&D) target which involves expenditure on R&D by member states as a share of their Gross Domestic Product (GDP). Whilst more emphasis is generally placed on the larger states, this dissertation seeks to evaluate the level of progress done by the smaller member states in relation to the R&D target, This research will also seek to review the progress along the difficulties that are encountered by the small states in cultivating research and development and to what extent are they common across the small EU states. A comparative case study approach is adopted, involving three EU member states, namely Malta, Luxembourg and Ireland. The research involves a quantitative approach with statistical analysis based on a wide range of indicators to answer the questions: ‘What progress has been achieved by small states regarding the Europe 2020 target for research and development?’ and ‘What factors explain the lack of progress made in Malta, regarding the Europe 2020 Research and Development target when compared to other small EU member states and what is the way forward? The results provide a positive assessment on the R&D target progress by small states and provides a perspective on the common difficulties that are encountered by the small states like the lack of workers with the right educational level, lack of a large manufacturing sector and the lack of a number of large firms. It also shows to what extent the EU is providing support, especially financial support, to help stimulate R&D in the small member states.