Abstract
Innovations play an inevitable role in achieving macroeconomic growth of countries, and innovative activity is perceived as a source of sustainable development. This paper’s main objective is to explore the impact of innovation determinants on the macroeconomic development of the EU (28) member countries and identify key problem areas distorting sustainable development and growth of these countries. The research analysis is performed using panel data regression models estimated from 2010 to 2018. Innovation potential was quantified using selected indicators, such as patent granted, high-tech exports, gross domestic expenditures on R&D, government expenditure on education, direct investment, gross fixed capital, and tertiary educational attainment. Such indicators as real GDP per capita and GNI per capita were applied to measure economic growth. The results provide evidence of a statistically significant relationship between innovation and economic growth (p < 0.01). Therefore, both research hypotheses were accepted. Based on innovation potential assessment, the statistically significant impact of five indicators were confirmed (high-tech exports, gross domestic expenditure on R&D, government expenditure on education, direct investment, and tertiary educational attainment). In this backdrop, the most significant effect was revealed for variable gross domestic expenditure on R&D (0.5343). The findings lead to the conclusion that the EU’s and national innovation policies and initiatives should aim to create framework conditions that favor the innovation environment and increase R&D expenditure to endorse real economic growth. AcknowledgmentThis article has been prepared within the research project VEGA No. 1/0279/19 “Model approaches to increase performance and competitiveness in the European area in the context of sustainable development”.
Highlights
Countries’ economic growth is dependent on innovation potential that is conditioned by developing various innovation factors
One out of the seventeen sustainable development goals set by the EU is to promote inclusive and sustainable industrialization as a powerful driver for improving living standards and ending poverty worldwide. This goal is measured by seven independent indicators: employment in medium and high technology manufacturing sectors, gross domestic expenditure on Research and experimental development (R&D), patent applications to the European Patent Office, and R&D personnel (Grodzicki, 2018)
The authors focused on evaluat- tors that support the development of digital teching the relationship between R&D expenditure nology and information; to evaluate the usage of and economic development in the EU mem- foreign capital for R&D
Summary
Countries’ economic growth is dependent on innovation potential that is conditioned by developing various innovation factors. Improving the quality of business environment (Belas, Dvorský, Strnad, Valaskova, & Çera, 2019) in connection with the sustainable development (Rajnoha, Lesnikova, Stefko, Schmidtova, & Formanek, 2019), as well as an increasing the innovation potential, belong to the priorities for the EU, which for years has been running a policy of supporting the development in national economies across Europe In this context, the EU has prepared a sustainable development package section of the 2030 Agenda for Sustainable Development (European Commission, 2015). One out of the seventeen sustainable development goals set by the EU is to promote inclusive and sustainable industrialization as a powerful driver for improving living standards and ending poverty worldwide This goal is measured by seven independent indicators: employment in medium and high technology manufacturing sectors, gross domestic expenditure on R&D, patent applications to the European Patent Office, and R&D personnel (Grodzicki, 2018). In this backdrop, Grabara (2019) proposed a new model of sustainable development evaluation
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
