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I fully concur that high-tech knowledge is needed to sustain an advanced industrial economy.
These two industries were chosen for their similarities in their identified desirability at the European level, their high-tech knowledge base, and start-up firm base.
Government policy-makers have added to this failure by not recognizing that long-term careers are key to the creation of a world-leading high-tech knowledge base, the subject of our second paper for INET's Distribution project.
But research on investment in the high-tech knowledge base that I have done for INET's Political Economy of Distribution series with Matt Hopkins demonstrates that the problem is not a lack of R&D spending, either by government or business.
Rather we argue that, with the rise of the New Economy business model, the main problem is the failure of U.S. high-tech corporations to invest in the "collective and cumulative careers" which you need if you want R&D spending to result in more high-tech knowledge.
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Officials in all three countries talk about shifting the emphasis to high-tech, "knowledge-based" industries.
So we need to invest in a high-tech, knowledge-intensive economy - where it's all about the "value added" - if we're going to compete in the 21st Century.
In a Viewpoint article, Imran Khan, director of the Campaign for Science and Engineering (Case) explains why he thinks Britain should invest in a high-tech, "knowledge-intensive" economy if it is to remain competitive in the 21st Century.
Finally, we use sectoral case studies to show how so-called high tech knowledge is used in specific long-established industries.
When we also include transition and Mediterranean countries over a shorter time period (1990 2011), we find that human capital significantly and positively impacts on the countries' economic growth but the effect of human capital via specialization in high-tech and knowledge-intensive activities is negative.
Britain is creating too few new high value-added jobs in high-tech and knowledge-intensive industries.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com