What governments could do to enable innovation and attract R&D activities: Experiences from Europe

Governments all over the world have recognized that the future of any country's economy depends on the ability to turn it into a knowledge-economy. Especially in Europe there is a rising concern that the old continent could fall behind. Remains the question: What can European governments do in order to correct this situation? In this paper, we discuss this from R&D costs, science landscape, risk capital, “red tape” and culture and people.