What it takes for Economic Growth
Competition from low-wage countries who harbor skilled forces have a better chance at hitting their business jack spot than those with high wage levels like Europe with less research intensive mechanisms. Research and development are key factors to improving economic growth. Discarding research and development leads to a consequence of inferior growth.
Low-tech industries also play a big role in the provision of jobs and value added in Europe. There is a close inter-relation between the high and low-tech industries like the latter, buy the products high-tech firms have to offer and also are stakeholders in the innovation of high-tech firms.
The author provides the European policy agenda as his basis of the argument. The paper holds empirical evidence to showcase the relationship between the high and low-tech industries.
The policy agenda also advocates the importance of low-tech firms as the former overlooks its significance.
The paper the author uses highlights the significance of research and development as a driving force of economic growth
The European policy may not be all rounded in terms of support as it overlooks the significance of low-tech industries and increasing regional inequality in Europe, as research and development are mostly concentrated on large city-regions. It highlights the significance of research and development as a driving force of economic growth.
Questions that arise are: are low-tech industries of importance to economic growth and does research and development really help in the race for economic growth?
To address issues highlighted, a policy that ensures equality on both high and low-tech firms should be formulated and factors enhancing economic growth discussed through research and development.
For economic growth, every aspect should be considered.