Economic development has cyclical dynamics and long-term dynamics the latter are typically related to demographical changes, innovation and long-term insti- tional changes in open economies. Financial markets that means mainly capital markets and labor markets are affected in OECD countries both by innovations and institutional reforms. As regards demographics ageing is a typical challenge on both sides of the Atlantic, and pension reforms in industrialized countries have placed greater emphasis on capital markets than in previous decades. Innovation dynamics certainly are also quite important for all high wage OECD countries. The Lisbon Agenda has put particular emphasis on more growth, higher innovation dynamics and better exploitation of the advantages of a digitally networked society. Traditionally, the US has a lead in global innovations, and the US policy certainly has contributed to the American technological leadership. There still is a per capita income gap in favor of the US and the US labor market situation also looks relatively favorable, but in the ?ve years since 2001 employment growth in the euro area was higher than that of the US. The euro area is, however, a rather heterogeneous set of countries which differ in terms of institutions, attitudes and reform progress and everywhere governments are aware that there have to be reforms, not least in the context of globalization which bring a more complex and dynamic spatial structure of value-added.

Structural Change, Innovation and Growth in the Single EU Market.- Wage Dispersion in Germany and the US: Is There Compression from Below?.- The Performance Effects of Unions, Codetermination, and Employee Involvement: Comparing the United States and Germany (with an Addendum on the United Kingdom).- Ageing and Pension Reforms: Simulations and Policy Options.- Ageing and Global Capital Flows.- Effects of the Ageing Population on Capital Markets.- US Economic Outlook: Beyond the Credit Crunch.- Selected Innovation Factors: An International Comparison.- The Innovation Imperative and the Role of SBIR Innovation Awards.- Trips, Pharmaceutical Innovation and Access to Medicines.- The Knowledge Society.- Technological and Growth Dynamics in the New Member States of the European Union.- Benchmarking Innovation Performance on the Regional Level: Approach and Policy Implications of the European Innovation Scoreboard for Countries and Regions.- Energy Technology Policy in Europe.- US Climate Change Emissions Mitigation Policy: Energy Technology Push and Other US Policies.- EU-US International Relations: A Political Science Perspective.- Policy Issues and Fields of Cooperation.