| Abstract: | Summary This article attempts to evaluate the possible British contribution to research and development in an enlarged European Economic Community, and formulates the conditions for progress of the British economy when joining the Common Market.In the past the  stop-go policy of the consecutive British governments created an atmosphere not conducive to economic growth. In the sixties the so called brain drain and the capital export were extensive. Annual gross investment in relation to gross national product was about 5% lower than in the Common Market countries, and pure capital productivity - represented by the ICOR and corrected for the contribution of labour - was unsatisfactory when measured according to EEC standards. These circumstances led to a considerable underinvestment in the United Kingdom (the author's very crude estimate regarding the period 1958–1968 reaches the figure of about £ 11.300 million), a process that probably will go on in the seventies, as the British income policy meets with huge difficulties. Without skilful and efficient use of the more than sufficiently available British research and development resources -so that the capital productivity can be raised - and without a drastic increase of the investment-income ratio as well as an adequate income policy, the success of the British entry into the Common Market will remain doubtful. Otherwise the export of valuable production factors will continue and unemployment will keep on increasing, so that even participation in the scheduled economic and monetary union by 1978 will be questionable. Even if the above mentioned conditions are fulfilled, considerable capital import may still be necessary to modernise capital stock in Britain, especially in the field of infrastructure, factory building and housing. |
