In 2006, R&D investment relative to GDP was only 1.9% in the euro area, compared with 2.7% in the United States. Cooperation between universities, public sector research institutes and industry must also intensify in order to raise the efficiency of public R&D spending. Unfortunately, in several euro area countries investment in human capital is still too low for a “knowledge-intensive” economy.
This is a matter of concern since the employability and flexibility of the labour force requires human capital to be continuously adjusted to labour market needs. This investment should start “early”, by enhancing the quality and efficiency of our schools and universities, and should be continued through lifelong training and learning. •  Increasing competition.