Seminar "The Greek Crisis Under the Lens of Innovation Policy" by Prof. Lena Tsipouri, University of Athens
Event details
| Date | 09.09.2015 |
| Hour | 12:00 › 13:30 |
| Speaker | Prof. Lena Tsipouri, University of Athens |
| Location | |
| Category | Conferences - Seminars |
"The Greek Crisis Under the Lens of Innovation Policy"
Abstract
A unique characteristic of Greece is that it has grown in episodes. Since statehood in the 19th century periods of exceptional growth were followed by debt crises and recessions and vice versa. During the growth episodes the development model changed from agricultural to manufacturing and then service-dominated economy (measured in terms of contribution to GDP) but has never succeeded in transforming the productive capabilities into adaptive innovative businesses building sustainable competitive advantages. Relying on low cost competition has condemned the country to a sort of persistent developed countries’ middle income trap.
The recent crisis can be considered as following the pattern of the economic history of the country: a period of above European average growth until 2008 was followed by a deep and persistent recession that is still troubling the country. I argue that the origins of this crisis can be traced back to the growth period, when again the public and private sectors proved unable to transform into the knowledge economy. The global crisis exacerbated but did not trigger the Greek difficulties:
1. The GDP growth generated in the years 2000-2008 was lower than the corresponding debt increase.
2. Using lags this would have been no problem, would the debt finance investments be able to generate revenues to repay the debt.
3. However, this was not the case: the grants from the Structural Funds of the EU and the accumulated private and public debt did not trigger any significant restructuring of the productive sector, innovative investments or transformation into higher value added activities; hence the debt could not be repaid.
4. One can observe that during the growth period, characterised by abundant liquidity, innovation policy could increase inputs but not outputs; the EU-imposed innovation policy generated research capabilities and (onerous) public investments with limited capacity utilisation and export performance.
5. This may now be well-understood, but the current austerity period deprives the country from the financial resources necessary for growth-oriented investments (assuming the will to change the development model).
6. The challenge now is what next: can the country find a path into a new growth episode? What would it take to achieve it?
Short Bio
Lena J. TSIPOURI is Associate Professor at the University of Athens, Department of Economic Sciences. She studied Economic Sciences at the Universities of Athens and Vienna, completed her PhD (Doctorat d’ Etat), at the University of Paris II, which received the first prize of the year 1988 and undertook postdoctoral research with a Fulbright Fellowship at MIT, Cambridge, Massachusetts.
Prof. Tsipouri teaches Economic Development, European Economic, Integration, Economics of Technological Change and Theory of the Firm. Her scientific research and publications are in the topics of research and innovation, regional development and corporate governance. Her most recent publications include journal articles on the Public Procurement of Innovation, comparing policies of Science in Society and Innovation, articles on the Greek economic crisis and issues on diversity.
Prof. Tsipouri is professionally involved in consulting work for EU institutions, the OECD and the UN in the same topics as her scientific research and is a member of several professional associations. She is currently the chairperson for the EU Innovation for Growth Group.
Abstract
A unique characteristic of Greece is that it has grown in episodes. Since statehood in the 19th century periods of exceptional growth were followed by debt crises and recessions and vice versa. During the growth episodes the development model changed from agricultural to manufacturing and then service-dominated economy (measured in terms of contribution to GDP) but has never succeeded in transforming the productive capabilities into adaptive innovative businesses building sustainable competitive advantages. Relying on low cost competition has condemned the country to a sort of persistent developed countries’ middle income trap.
The recent crisis can be considered as following the pattern of the economic history of the country: a period of above European average growth until 2008 was followed by a deep and persistent recession that is still troubling the country. I argue that the origins of this crisis can be traced back to the growth period, when again the public and private sectors proved unable to transform into the knowledge economy. The global crisis exacerbated but did not trigger the Greek difficulties:
1. The GDP growth generated in the years 2000-2008 was lower than the corresponding debt increase.
2. Using lags this would have been no problem, would the debt finance investments be able to generate revenues to repay the debt.
3. However, this was not the case: the grants from the Structural Funds of the EU and the accumulated private and public debt did not trigger any significant restructuring of the productive sector, innovative investments or transformation into higher value added activities; hence the debt could not be repaid.
4. One can observe that during the growth period, characterised by abundant liquidity, innovation policy could increase inputs but not outputs; the EU-imposed innovation policy generated research capabilities and (onerous) public investments with limited capacity utilisation and export performance.
5. This may now be well-understood, but the current austerity period deprives the country from the financial resources necessary for growth-oriented investments (assuming the will to change the development model).
6. The challenge now is what next: can the country find a path into a new growth episode? What would it take to achieve it?
Short Bio
Lena J. TSIPOURI is Associate Professor at the University of Athens, Department of Economic Sciences. She studied Economic Sciences at the Universities of Athens and Vienna, completed her PhD (Doctorat d’ Etat), at the University of Paris II, which received the first prize of the year 1988 and undertook postdoctoral research with a Fulbright Fellowship at MIT, Cambridge, Massachusetts.
Prof. Tsipouri teaches Economic Development, European Economic, Integration, Economics of Technological Change and Theory of the Firm. Her scientific research and publications are in the topics of research and innovation, regional development and corporate governance. Her most recent publications include journal articles on the Public Procurement of Innovation, comparing policies of Science in Society and Innovation, articles on the Greek economic crisis and issues on diversity.
Prof. Tsipouri is professionally involved in consulting work for EU institutions, the OECD and the UN in the same topics as her scientific research and is a member of several professional associations. She is currently the chairperson for the EU Innovation for Growth Group.
Practical information
- General public
- Free