1. Pure research — чисто теоретические исследования

2. applied research — прикладное исследование

3. amateur — любитель

4. go unrecorded — быть незарегистрированным

13.7.1.2. Read the text "Innovation" and make a synopsis of it.

a)

Innovation

By innovation economists mean putting new products and services on to the market or new

means for producing them. Innovation is preceded by research that may lead to an invention which

is then developed for the market. Innovation is an important source of economic expansion and

productivity. It is central to the new theories of economic growth although it has long been taken as

important. Schumpeter* gave a central role to it in his theory of economic growth. Recent eco-

* Schumpeter, Joseph Alois (1883-1950) — Professor of economics.

п р о и с х о д и т

такой

о б м е н ?

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nomics has been preoccupied with the incentives for innovation, in a world where the benefits of it

are inevitably shared: a company that invents a new drug obtains some profit, on account of the

patent system. Even that is limited in duration. But there are many innovations that cannot be

patented. The idea of telephone banking, for example, has been widely copied. That replication is

an important development for the benefit of consumers, but does it diminish the likelihood that

such ideas will flow in future? The existence of a first mover advantage is clearly important; allowing

the innovator to capture profits from an early start in an industry is important.

Commentary and Notes to Text 13.7.1.2

1. Incentive for innovation — стимул к новаторству

2. replication — копирование

3. first-mover advantage — главное преимущество

4. to capture profits — извлекать выгоду

b) Look at Figure 13.2 and answer the question: Why does employment in footwear and clothing

make only 21.4% in businesses with 1000 and more workers while the rest 78.6% work in small enterprises

in the UK?

Timber and wooden furniture 2.5

Instrument engineering 8.6

Mechanical enginering 23.9 Other ransportequipment 1.17

Textile ind ustry 10.1

Paper and paper products, printing. Publishing

r .isce124gohnew ltscer19aobdnpuPitsco fsgoitn is169onF r145onCtcut

Office

machinery and data

processing equipment

53.4

M e t a l

manufacturing

34.9 F o o d , d r in k

a n d t o b a c c o 3 9 .6

M o t o r v e h i c l e

a n d p a r t s 5 8 . 6

C h e m i c a l

i n d u s t r y 4 1 . 3

Manufacture of non-metalic mineral 'products 29.6Electrical and electronic enginering 34.7

Figure 13.2. Percentage of total employment in selected industries in businesses with 1000 or

more workers

Source: adapted from CSO, Business Monitor.

Vocabulary Notes to Text 13.7.1.2

1. a large number of branches — разветвленная сеть филиалов

2. retail bank — розничный банк

3. credit bank — кредитный банк

13.7.1.3. Read the text "Technological Innovation" and answer the following questions:

What are the advantages of the joint European research?

What fundamental discoveries have been made due to joint research?

Technological innovation

The founders of the European Union rightly saw that Europe's future prosperity would depend

on its ability to remain a world leader in technology. They saw the advantages to be gained from

doing joint European research. So, in 1958, alongside the EEC, they set up Euratom — the Euro-

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pean Atomic Energy Community. Its aim was to enable the member states to jointly exploit nuclear

energy for peaceful purposes. It was given its own Joint Research Centre (JRC) consisting of nine

research institutes spread among four sites: Ispra (Italy), Karlsruhe (Germany), Petten (the Netherlands)

and Geel (Belgium).

But as scientific and technological innovation gathered pace, European research had to diversify,

bringing together as wide a variety of scientists and research workers as possible. The EU had to

find new ways of funding their work and new industrial applications for their discoveries.

Joint research at EU level is designed to complement national research programmes. It focuses

on projects that bring together a number of laboratories in different EU countries. It supports

fundamental research in fields such as controlled thermonuclear fusion (a potentially inexhaustible

source of energy for the 21st century) through the Joint European Torus (JET) programme. It

also encourages research and technological development (RTD) in key industries such as electronics

and computers, which face stiff competition from outside Europe.