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    Europe Direct is a service to help you nd answersto your questions about the European Union

    Freephone number (*):

    00 800 6 7 8 9 10 11

    (*) Certain mobile telephone operators do not allow access to 00 800 numbers or these calls may be billed.

    More information on the European Union is available on the Internet (http://europa.eu).

    Cataloguing data can be found at the end of this publication.

    Luxembourg: Of ce for Of cial Publications of the European Communities, 2008

    ISBN 978-92-79-09848-2

    European Communities, 2008Reproduction is authorised provided the source is acknowledged.

    Printed in Belgium

    PRINTED ON WHITE CHLORINE -FREE PAPER

    Cover photo: Pamanes - Fotolia.com.

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    Change, Innovation and Distribution

    Change, innovation and distributionSocial, political and economic trends and threats

    Con erence organised by theBureau o European Policy Advisers o the European Commission

    35 December 2007Genval

    M B M S ( )

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    Ab u h Bur au Eur p a P licy Advi r (BEPA)

    T Bur au Eur p a P licy Advi r (BEPA) , , P C S

    U .

    D , P , BEPA z C . I

    . I BEPA

    EU I ,

    BEPA C S ) ,

    BEPA , , , P , C ,

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    CHANGE, INNOVATION AND DISTRIBUTIONS cial, p li ical a d c mic r d a d hr a

    A BEPA P A C

    G , B , D 007

    Editors

    M B M SM 008

    T , , B , V C , M C , M J C B , C I , V G , A H ,S z S , R V .

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    DISCLAIMER

    F D 007 BEPA G j x BEPA P A (GPA),

    (GSPA) E P A (GEPA) B - . T Change, in-

    novation and distribution: social, political and economic trends and threats.

    T x BEPA P A

    C .

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    8

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    Change, Innovation and Distribution 9

    REMARKS BY JOSE MANUEL BARROSOPRESIDEN OF HE EUROPEAN COMMISSION

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    0

    IN RODUC ION

    F D 007 B E P A G j

    BEPA P A (GPA), S P A (GP A (GEPA)

    B - . T BEPA P A CCha g , i va i a d di ribu i : cial, p li ical a d c mic r d a d

    hr a .

    T Comparing wel are between Europe and the United States, Competition, innovation and growth and Europe and global governance: to-wards a cosmopolitan order?

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    Change, Innovation and Distribution

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    Change, Innovation and Distribution

    EXECU IVE SUMMARY

    T BEPA P A - x .

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    Chapter One

    SPEAKERL r z Bi i Smaghi

    M Ex B ,E C B

    1 OPENING DINNER SPEECHGlobalisation and public perceptions

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    Lorenzo Bini Smaghi, Member o the Executive Board, EuropeanCentral Bank, delivered a keynote speech on globalisation and public perceptions at the con erences opening dinner

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    Change, Innovation and Distribution 7

    I . N 9 0

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    8

    Globalisation and li e satis action across OECD countries

    Data re er to the mid-2000s. Data on Li e Satis action rom theWorld Values Survey, ourth wave. Te globalisation ranking is the ranking o countries in the A. . Kearney/Foreign Policy

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    Change, Innovation and Distribution 9

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    Change, Innovation and Distribution

    M f . I

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    Globalisation ranking and social expenditure as a share o GDP across OECD countries

    Data re er to the mid-2000s. Te globalisation ranking is the rank-ing o countries in the A. . Kearney/Foreign Policy GlobalisationIndex. Data on social expenditure are OECD.

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    Change, Innovation and Distribution

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    Change, Innovation and Distribution

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    Chapter wo

    PR b r J. G rd

    N U ,N B E R

    DCharl Wypl zT G I , G CEPR

    1 PLENARY SESSIONComparing wel are betweenEurope and the United States

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    8

    Robert J. Gordon examined wel are interpretations o the decline inEuropean hours per capita relative to the US. While Europes level o productivity almost reached the US level in 1995, its income per person never exceeded 75% and has since allen below 70%.How could Europe be so productive yet so poor?

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    Change, Innovation and Distribution 9

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    Change, Innovation and Distribution

    By how much does American GDP overstate wel are? G

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    Chapter wo

    PRam Marim

    P , U P F ,B , CRE CREA

    DC cilia Garcia P al aR D , U M

    2 PLENARY SESSIONCompetition, innovation and growth

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    Ramn Marimons argument drew on Joseph Schumpeters coreinsights that innovation is driven by entrepreneurial investment motivated by the prospect o monopoly profts, and that newinnovations drive out old models o production in a creativedestruction process.

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    Change, Innovation and Distribution

    Competition and knowledge investment M

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    In her discussion o Marimons presentation, Cecilia GarciaPealosa ocused on three issues: patents to reward innovation,barriers to competition, and the relationship betweenentrepreneurship and inequality.

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    Chapter wo

    PA dr Sapir

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    P E ,I W (I W), U

    3 PLENARY SESSIONEurope and global governance:towards a cosmopolitan order?

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    8

    In his presentation on Europe and the global economy, Andr Sapir highlighted the main governance challengesthat Europe aces today.

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    0

    In his discussion o Sapirs presentation, Horst Siebert ocused on the issue o rules in acosmopolitan order stressing the case o Chinasrise. Siebert argued that we need rule systemsand mediation to respond to shi s in thebalance o power.

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    Chapter Tree

    PJ a Pi a i-F rry

    P , U P D ;D B , B

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    1 WORKING GROUPNew Wave o globalisation:characteristics and implications

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    Chapter Tree

    ML uka T ukali

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    2 WORKING GROUPSources o growth in theglobal market economy

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    Chapter Tree

    MJ Cu il ir

    S A P E C

    PV lk r P r hC D B ,S W P (SWP), B

    RJ a -D mi iqu Guilia i

    P , F R S , P

    3 WORKING GROUPGlobalisation and the nation statein the 21st century

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    V P . H

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    Chapter Tree

    MH l Wallac

    C P , E I ,L S E P S

    PFra i B urguigD , E E P (PSE);

    C E , W B

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    P , U B ; D ,I S L (IZA), B

    4 WORKING GROUPInequality and social models in Europe

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    8

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    Chapter Tree

    MFra c c Giavazzi

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    R g r LiddlV -C (P ), P N , UK; VE I , L S E

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    5 WORKING GROUPTe uture o Europe:investing in youth

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    0

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    Chapter Tree

    MDu a Sidja ki

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    6 WORKING GROUPTe trans ormation o democray and the Europe o the uture

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    Y M E . H R D

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    Change, Innovation and Distribution

    REFERENCESChapter One: Globalisation and public perceptionsA , A., D , R M C , R ( 00 ). I : E

    ?, Journal o Public Economics, 88, . 009 0 .

    A , R., B , P. W , J. ( 00 ). G L ML -S W E U S ( 00 : R , L ), P B J W .

    B , G. ( 007). E , , : 007 DG ECFIN A R C G

    E : EMU ?, B , & O 007.

    Bj , C., D , A. F , J. A. V. ( 007). T ? E z ,Public Choice, 0, . 7 9 .

    C , A., F j , P. S , M. A. ( 007). R , E x zz ,IZA Discussion Paper No. 2840. C C F A( 00 ), P , :// . . /.

    D , J. B., S , S., S , A. W , E. N. ( 00 ). T W DW , .

    M , F. A , R. ( 007).Te External Dimension o the Euro Area: Assessing the Linkages,CU P , L .

    D , A., S , J. U , H. ( 00 ). T x : . S I B C R

    E , L. S , K. ( 007). T f , BIS W

    E ( 007). :// . . / _ / _ . .

    IMF ( 007). G ,World Economic Outlook, S 007, W DC.

    K , A., P , E.,. R , K. W , S.-J. ( 00 ).F : P 8 .

    L , E. E. ( 007). A , f , , T F Te World is Flat, Journal o Economic Literature , , , . 8 .

    M , . S , A. ( 00 ). R z ,Economic Teory .

    S , K. S , M.( 00 ). P , I S B , P B M W ( .)Globalization and Egalitarian Redistribution ,P , NJ: P U P .

    S z , G. U , H. ( 999). G Te World Economy ,, . 9 .

    S , R. ( 00 ).Te New Financial Order: Risk in the 21 st Century, P U P .

    W P O T C C G A ( 007).

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    Chapter wo:Plenary Session 1 Comparing wel are between Europe and the United StatesA , A., G , E. S , B. ( 00 ). W L U SD ?NBER Macroeconomics Annual 2005, 0, . .

    B , O. ( 00 ). T E F E , Journal o Economic Perspectives, 8/ , F , . .

    D -B , I. G , R J. ( 007). T R L -M C E P G , E P , 9 & 0

    Lj , L. S , . J. ( 00 ). I L , H C , L , x Ex E E ?, NBER M , 7

    P , E. C. ( 00 ). W D A W S M M E ?,Federal Reserve Bank o Minneapolis Quarterly Review, 8/ , . .

    Chapter wo:Plenary Session 2 Competition, innovation and growthA , D. ( 997). ,Review o Economic Studies,

    ( ), .

    A , D., A , P. Z , F. ( 00 ). D , , D P # 7.

    A , D. P , J. ( 999). T Journal o Political Economy, 07 ( ), 97 .

    A , D. S , R. ( 999). H ,International EconomicReview, 0 ( ), 8 7 0.

    A , P., B , N., B , R., G , R. H , P. ( 00 ). C U- ,Quarterly Journal o Economics, 0 ( ), 70 8.

    A , P., B , R., G , R., H , P. P , S. ( 00 ). F , , , I F S & H

    A , P. G , R. ( 00 ).Competition and Growth: Reconciling Teory and Evidence , MI P ,C , M .

    A , P. & H , P. ( 999).Endogenous Growth Teory , MI P , C , M .

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    K , N. R. ( 00 ). B , R DF R B M .

    M , A. & M , R. ( 99 ). C , , Journal o Economic Teory,8 ( ), 9 9. .

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    M , J. ( 990).Te Lever o Riches: echnological Creativity and Economic Progress, Ox U PN Y .

    P , S. L. P , E. C. ( 990).Barriers to Riches, MI P , C , M .

    R , P. M. ( 990). E , Journal o Political Economy, 98 ( ), 7 0 .R , P. M. ( 99 ). : E R , 7 ( ), 9 .

    W B ( 00 ). D B 00 : R O G , W B

    Chapter wo:Plenary Session 3 Europe and global governance: towards a cosmopolitan order?B , R. J. ( 98 ). R D T R V D ,Te Economic Journal ,V . 9 , S : C P ( 98 ): 7.B , J. ( 99 ). U.S. P : T I F A BA. O. , T D D P A , AEI P , 99 .

    B , D. K., D , A. S , R. M. ( 00 ). M , R B U S J , Te World Economy , ( ): 80 -8 8.

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    H , F. A. . ( 9 8). D W E ,Kieler Vortrge, . K , G : I W E .

    H , G. C., S , J. J. . E , K. A. ( 990).Economic Sanctions Reconsidered: History and Current Policy, . W , D.C.: I I E .

    I L S ( 007). G I O:// . . / _ .

    K , M. W , H. J . ( 97 ). A E P C F Journal o International Economics. V . ( ): . 9 -98.

    K , F. E. P , E. C. ( 977). R R D : T I Journal o Political Economy( 977), V . 8 ( ).

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    P , K. R. ( 9 ).Te Open Society and its Enemies , L , UK: R & K P . Q . 00 .

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    S , A. ( 007),Fragmented Power: Europe and the Global Economy, B : B .

    S H. ( 00 ). AF A A D H A O C ? , K W(M 00 ).

    ( 00 ). L C : A P ITe World Economy , 9 ( ): 7- 9.

    ( 007).Te World Economy: A Global Analysis , . R , L N Y , 007., C. ( 9 ). A P T L Ex , J P E

    W O (W O) ( 00 ). T F W O, R CD -G S P . G , S z .

    ( 007 ) I . US: - .A : :// . . / / _ / _ / 08_ .

    ( 007 ) U W O: S D A : :// . . / / _ / _ / _ . #

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    Change, Innovation and Distribution 7

    PROGRAMMEMonday 3 December 2007 OPENING DINNER SPEECH

    GLOBALISA ION AND PUBLIC PERCEP IONS L z B S , E C B

    uesday 4 December 2007 OPENING PLENARY:COMPARING WELFARE BE WEENEUROPE AND HE UNI ED S A ESP ,Robert GordonD ,Charles Wyplosz

    WORKING GROUPS. N :

    P ,Jean Pisani-Ferry R ,Joo Borges de Assuno

    . S P ,Klas EklundR ,Lars Jonung M Loukas soukalis

    . G P ,Volker PerthesR ,Jean-Dominique GiulianiM Jos Cutileiro

    PLENARY SESSION:COMPE I ION, INNOVA ION AND GROW HP ,Ramn MarimonD ,Cecilia Garcia Peelosa

    WORKING GROUPS. I EP ,Francois BourguignonR ,Klaus ZimmermannM Helen Wallace

    . T E : P ,Roger LiddleR ,Julian Le GrandM Francesco Giavazzi

    . T E P ,Yves Mny R ,Jonas Condomines-BraudM Dusan Sidjanski

    PLENARY SESSION:DISCUSSION WI H HE PRESIDEN OFHE EUROPEAN COMMISSION,JOSE MANUEL BARROSO

    Wednesday 5 December 2007 PLENARY SESSION:EUROPE AND GLOBAL GOVERNANCE:OWARDS A COSMOPOLI AN ORDER

    P ,Andr SapirD ,Horst Siebert

    CONCLUSIONC ,Vtor Gaspar

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    8

    LIS OF PAR ICIPAN SJos Manuel BARROSO P , E C

    assos BELESSIO IS BEPA, E C

    Mrton BENEDEKBEPA, E C

    Lorenzo BINI SMAGHI M , Ex B , E C B

    Joo BORGES DE ASSUNOA P , U C P , BEPA G S P A (GSPA)

    Franois BOURGUIGNON D , E P (PSE); C EB ; M , BEPA G S P A (GSP

    Marco BU I D D -G , D -G E A , E C

    Vasco CAL C G C , E C

    Marcel CANOY BEPA, E C

    Maria da Graa CARVALHO BEPA, E C

    Jonas CONDOMINES BERAUDBEPA, E C

    Pierre DEFRAIGNE D , EUR-IFRI (I B

    Jos CU ILEIRO S A P E CA , F G F. K P , I S , P ; M , BEPA G P A

    Paul DE GRAUWE P , K U L (KUL); ME P A (GEPA)

    Mathias DEWA RIPON P , U L B x (ULB); M , BE

    E P A (GEPA)Juan DOLADO P , U C III M ; M , BEPA

    E P A (GEPA)

    Sarah DUBRULLE BEPA, E C

    Klas EKLUND S E , S E B (SEB), SM , BEPA G E P A (GEPA)

    Cecilia GARCIA PEALOSA R D , U M

    Vtor GASPAR A D -G , BEPA, E C

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    Change, Innovation and Distribution 9

    Francesco GIAVAZZI P , U B , M ; M , BEPA GP A (GEPA)

    Robert GORDON P , N U , E , I

    Agns HUBER BEPA, E C

    Lars JONUNG D -G E F A , EC

    Johannes LAI ENBERGER S , E C

    Julian LE GRAND P , L S E ; M , BEPA GP A (GSPA)

    Jean-Dominique GIULIANI P , F R S , P

    Paul HOFHEINZ P , L C , BKarel LANNOO C Ex O , C E P S

    B

    Frdric LERAIS BEPA, E C

    Roger LIDDLE V -C (P ), P N , UK; V F , EI , L S E

    Ram n MARIMON P , U P F , B

    Joo MARQUES DE ALMEIDAM , P B C , E C

    Hans MAR ENS C Ex , E P C (EPC), B

    Yves MNY P , P E U IM , BEPA G P A (GPA)

    Ann ME LER Ex D , L C , B

    Volker PER HES C D , G I IA , SWP, B

    Jean PISANI-FERRY P , U P -D ; D , BM , BEPA G E P A (GEPA)

    Jitka RYCH ARIKOVA P , C U , P ; M , BEPA GP A (GSPA)

    Andr SAPIR P , U L B x (ULB); S FB ; M , BEPA G E P A

    Dusan SIDJANSKI S A P E C P E , D S P

    G ; M , BEPA G P A (GPA)

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    0

    Horst SIEBER P E , I W (I W), UM , BEPA G E P A (GEPA)

    Myriam SOCHACKI BEPA, E C

    Suzanne SPEER BEPA, E C

    Loukas SOUKALIS S A P E CU A ; P ELIAMEP, V PE ; M , BEPA G P A (GPA) S P A (GSPA)

    Reinhilde VEUGELERS BEPA, E C

    Helen WALLACE C P , E I , L S P S ; F D , R S C

    U I , F , M , BEPA G P(GPA)

    Charles WYPLOSZ P , I U H E IU G ; M , BEPA G E P(GEPA)

    Klaus ZIMMERMANN P , U B ; D , I S(IZA), B ; M , BEPA G S P A

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