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At EU level, measures to promote research and innovation became concrete with the creation of the European Research Area and the issuing of the White Paper on Governance in 2001. These were measures to tackle low economic growth and unemployment and to boost European innovation with the aid of science and technology. Nevertheless, the economic crisis of late 2008 has halted this process and exposed the lack of convergence across European and neighbour countries in innovative performance. Moreover, economically more affected countries have abandoned innovation policies as part of the austerity policies precisely dictated by the EU bureaucrats. This paper first discusses the EU policies towards the creation of the knowledge society and the effect of the crisis in relation to research and development. Secondly, the paper will analyze the case of Italy and how it has failed to keep up with some of its other European neighbours in terms of investment on knowledge, arguing that lack of such investment make countries less equipped and more dependent on knowledge generated in other places.

EU Innovation Performance Policies and the Economic Crisis: Innovation Policy and the Political Failure of Italy