Quick & New: Dalia Marin – Europe in Need of State-Led Research

Crowding-In is the new Crowding-Out: Dalia Marin argues that Europe, and Germany in particular, should support companies with greater state-led technological investments.

Credit: Johannes Plenio
 

In her new article for Project Syndicate, Dalia Marin argues that Europe and Germany in particular are in dire need of state-led investments to catch up with US-companies in the tech industry. Marin is building up on the influential work of economist Mariana Mazzucato who points to the incremental role of US government agencies have played in the development of new technologies such as the Internet, GPS navigation and touchscreen displays.

Marin puts a special focus on the DARPA (Defense Advanced Research Projects Agency), a research institute integrated in the US-military. She argues that such state-led research institutes have the possibility to crowd in rather than crowd out private investments. A recent OECD study on the effects of government-funded military research showed a significant positive effect on private research when increasing the spending on publicly funded research.

Similarly shaped agencies can also be found in China, Israel and South Korea. Marin argues, that if Europe and Germany want to catch up in the development of technological innovations, the creation of a similar agency like DARPA is necessary.

The full article on Project Syndicate: Dalia Marin – Europe Needs a DARPA

Prof. Dr. Dalia Marin is a former professor at the LMU and a research fellow at the Centre for Economic Policy Research.

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