Higher education as factor for economic development: Lithuanian case

This paper proposes the solution of information service platform of China human resources in science and technology based on WEBGIS. The platform and the technical standards of information service and supervision for China human resources in science and technology are developed. The platform is consisted of the five parts, i.e. the Information Infrastructure Network (IIN), the Data Collection System (DCS), the Data Processing System (DPS), the Data Warehouse (DW) and the Information Service and Supervision System (I3S) based on WEBGIS. It can provide the following main functions, such as (1) on-line information search for China human resources in science and technology, (2) on-line information collection of China human resources in science and technology, (3) information processing and analysis of China human resources in science and technology, (4) on-line information update of China human resources in science and technology, (5) on-line information service and supervision of China human resources in science and technology based on WEBGIS.

The rapid increase of China's human resources in science and technology (HRST), described and analyzed in Chapter 3, is a product of the nation's rapid, continuous, and sustained economic growth during the post-Mao economic reform and open-door era. The country's growth imperative has fuelled the demand for larger and larger numbers of high-quality technical and managerial personnel. This has placed an increasing burden on the higher education system, which has been asked to provide a larger volume of capable graduates to assume crucial positions throughout the economy and society. In recent years, higher education has become much more desirable and also more affordable to most Chinese, who recognized that investment in higher education can bring long-term benefits in terms of rising levels of compensation and greater social status. As the utility of obtaining a college degree or beyond has become more and more apparent, and taking into account the one-child family planning policies across most of China, there has been a steady acceleration in the number of students seeking higher education in China. Between 1991 and 2006, China's regular institutions of higher education turned out a total of 21 million undergraduates and 1.25 million graduate students, including 193,000 doctorates (see Table 2.1). The total enrollment in higher education, including those in various non-traditional higher education programs – from adult institutions of higher education, radio and TV universities, internet-based education, to self-learning – reached 25 million by the end of 2006.

In the study, the concept of innovation, which is an important phenomenon in the process of economic growth and development, has been analyzed. This study aims to reveal the relationship between innovation, which is an important factor in economic development and growth, and research and development expenditures. In the study, an econometric model was established in order to determine the effect of research and development expenditures on innovation. In this model, the number of domestic patent applications was taken to represent innovation as the dependent variable. As independent variables; R&D expenditures and gross capital data were used. Panel data analysis was conducted for the sample of 35 countries, covering the period 2000-2019. The country sample was formed from among the top 49 countries whose data is available in the 2022 global innovation index ranking. In the analysis, it has been concluded that R&D expenditures have a significant positive effect on innovation. The gross capital variable, on the other hand, negatively affects the patent variable, which represents innovation. In the study, it was concluded that R&D expenditures have a significant positive effect on innovation. In order to increase innovation, countries should first allocate more resources to research and development activities.

Energy innovation is critical for addressing climate change and the ecological transitions of both developed and emerging economies. The present paper aims at the identification and assessment of patterns in energy innovation convergence across a sample of 27 European countries over the period 2000–2018. The research is based on data covering a broad category of patents related to climate change mitigation technologies in the energy sector, including combustion inventions with mitigation potential (e.g., using biomass), extracted from the Organisation for Economic Co-operation and Development (OECD) Statistical Database. Using a nonlinear time-varying factor model, the paper demonstrates that energy innovation efforts in the examined sample follow a pattern of club convergence. The findings allow the identification of three convergence clubs characterised by distinct disparities in energy patent intensity, as measured by the number of patent applications per 10 million inhabitants. Moreover, the results of an ordered logit model demonstrate that the emergence of the identified convergence clubs might be attributable to initial differences in per capita environmental research and development (R&D) expenditure, human resources in science and technology (HRST), and environmental policy stringency. The findings have important policy implications as they suggest the need for more tailored policies based on smart development and specialization frameworks designed to boost the energy innovation performance of the laggard countries, more fully exploiting the potential of their less technologically advanced sectors, such as agriculture.

Objectives: This paper summarises the findings of a report by Acedański et al. (2023) that focuses on the relationship between science and economic growth. The report was commissioned by the Conference of Rectors of Economic Universities (KRUE) and prepared by researchers from five public economic universities in Poland. The authors of the report and the KRUE aim to share their message with a wide audience that includes policymakers, academic experts, and students. Additionally, the article analyses the impact of research and higher education spending on convergence processes in Central and Eastern European countries. Research Design & Methods: The study examined different indicators, including government expenditure on basic research, higher education, and research and development. We utilised SURE models and observed that there was notable diversity in the convergence processes among the analysed countries. Additionally, we found a correlation between research spending and the rate of catching up. However, it is important to note that this relationship is not universal and varies across countries, even those within the same region. Findings: Acedański et al. (2023) report quantifies the relationship between science, higher education, GDP, and economic development in Poland. The report states that science and higher education sectors positively impact local economies, and individuals with higher education contribute the most to human capital resources in the economy, leading to GDP growth. However, Poland has a funding gap in research and science compared to highly developed countries as well as many Central and Eastern European countries. The report suggests that investment in a country’s education and higher education system is essential for generating developmental impulses and supporting its economy. Implications / Recommendations: The impact of scientific activity depends heavily on funding, especially through higher education institutions. In Poland, the salaries of academic teachers have decreased compared to other professions, and their position in the wage distribution is the worst it has been in the past two decades. Investing in a country’s education and higher education system is essential to support the economy. Acedański et al. (2023) suggest that a 0.1 percentage point increase in research and development expenditure, as a percentage of GDP, can lead to a 0.8 to 1.3 percentage point increase in GDP growth. However, the conclusion was based on panel data from EU countries, and the impact of scientific research on GDP may differ when analysing Central and Eastern European (CEE) countries. In this paper, we also present an extended analysis of the impact of science and education on economic growth through the lens of convergence processes. We show that the relationship above is not straightforward and represents substantial variability across countries, even those of the same region. Contribution / Value Added: Firstly, the report by Acedański et al. (2023) emphasises the importance of the science and higher education sector for economic growth. Their empirical research helps quantify the relationship between science, higher education, GDP, and economic development, offering a deeper understanding of this connection. The report complements previously published analyses and research on the topic. Secondly, our regional research shows that the convergence processes vary greatly among the analysed countries. The inclusion of spending on science, research, or higher education in the convergence equations has a varied impact on the assessment of the pace of the catching-up processes in the CEE region.

Research of The Combination of Production and Education In Higher Vocational Education In The Period of Economic Transition

The paper seeks to explore the drivers of European innovation represented by three innovation outputs (patent, trademark, and design applications), emphasizing spatial autocorrelation and heterogeneity. It includes data from 202 regions from 22 European Union (EU) Member States, along with 18 regions from Switzerland, Norway, and Serbia in 2019, providing a more comprehensive geographic scope. By considering multiple indicators of innovation output, including patents, trademarks, and design applications, the main objective is to examine spatial innovation spillovers and the heterogeneous responses of regional innovation output to innovation inputs in the context of European regions. To achieve this goal, the main instrument of the analysis is a newly proposed methodological framework called Mixed Geographically Weighted Regression-Spatial Autoregressive (MGWR-SAR) models. The analysis suggests that while all innovation inputs (most-cited publications, research and development expenditure in the business sector, human resources in science and technology, and population density) are justified in increasing all innovation outputs, the strength of particular determinants of innovation might vary across regions. Moreover, the analysis reveals valuable insights into how spatial spillovers influence regional innovation. The impact of spatial connections varies across the regions, with patents showing the strongest linkages, affecting about 92.27% of regions. Although trademarks and designs have fewer spatial connections (approximately 50% of regions), they still play a significant role in innovation. Although patents have traditionally dominated discussions of innovation, the findings reveal the importance of incorporating designs and trademarks as complementary indicators. Overall, the study highlights the need for multiple metrics to comprehensively evaluate innovations.

This paper explores the role of spatial effects in the innovation processes across 245 NUTS-2 European Union (EU) regions for the period 2008-2012. The goal of the paper is to verify two hypotheses. The first one deals with spatial autocorrelation, i.e., our assumption is that the regional innovation process is not a spatially isolated process but is determined by innovation activities in neighbouring regions as well. Secondly, we assume non-homogeneous responses of innovation output to changes in innovation inputs across groups of regions, i.e., a spatial heterogeneity hypothesis. Patent applications were chosen as a proxy for innovative activity and we considered research and development expenditures and human resources in science and technology as innovation inputs. In order to model the behaviour of innovative activity at the EU regional level, we constructed and estimated a spatial regional knowledge production function model and spatial regime models. The results of the analysis confirm the hypothesis that the regional innovation process is not a spatially isolated process but is also influenced by innovation activities in neighbouring regions, and we have also identified two spatial innovation regimes.

Introducing an employment variable with five levels of educational attainment per capita and employing inequality decomposition, this study addresses three questions. How does labour force vary by education and provinces? How does labour force utilization vary by education and provinces? What are the potential causes of differences? We find that the no‐primary‐education group is more endowed in less‐developed provinces and allocated most unequally among education groups across provinces, despite past universal primary education policies. The senior‐secondary‐education group with the largest labour share is a growing concern due to the lower employment rate and largest interprovincial inequality.

The number of granted patents, as an innovation output at macro level, may be influenced by different factors. In this study the total number of granted European patents was analyzed based on key science and economic factors, i.e. innovation potential indicators. Nine input factors were considered: total number of researchers in the higher education sector, total number of researchers in the government sector, total number of researchers in the business enterprise sector, research and development (R&D) expenditure in the higher education sector, R&D expenditure in the government sector, human resources in science and technology, employment rate, unemployment rate and gross domestic expenditure on R&D. The main goal was to determine which factor has the highest impact on the number of the granted patents. The total number of the granted patents belongs to the electrical engineering, instruments, chemistry, mechanical engineering and other fields. Adaptive neuro-fuzzy inference system (ANFIS) was used as the searching methodology. In general the total number of researchers in the business enterprise sector is the most influential factor for the total number of granted patents.

In this paper we analyze the impact of the quality of human capital on the\n main economic indicators of South-Eastern Europe countries [SEE] at the NUTS\n 2 level. The subjects of this research are the human capital indicators of\n regional competitiveness. The quality of human capital depends largely on the\n age structure of the population and the quality of education. Those regions,\n which have the highest percentage of the working-age population and highly\n educated people, are able to achieve higher productivity and gain a\n competitive advantage over other regions. As main indicators of the quality\n of human capital we identified: population; persons aged 25-64 with tertiary\n education attainment; students in tertiary education and participation of\n adults aged 25-64 in education and training and human resources in science\n and technology. As main economic indicators, we identified: regional gross\n domestic product; employment and income of households. The aim of this paper\n is to determine whether there is a correlation between the indicators of the\n quality of human capital and economic indicators. As a main methodology we\n have used the correlation coefficient which shows interdependence of the\n analyzed indicators. As part of our analysis, we consider only EU member\n states that belong to the SEE countries: Slovenia, Croatia, Romania, Bulgaria\n and Greece. We conclude that in all countries there is a high multiple\n correlation coefficient between the indicators human resources in science and\n technology, number of students and employment. [Projekat Ministarstva nauke\n Republike Srbije, br. 47007 III]

The substitution of capital for knowledge as the main source of progress is the basis for the development of a "knowledge-based economy". Research and development (R & D) is one of the means by which the availability of new knowledge can be increased in an organized manner. The paper, therefore, enquires into such issues as the impact of research and development (R&D) expenditures on the firm’s growth. Brought into focus is the fact that the level of innovation adoption of other firms is not completely an exogenous variable but is directly related to the R&D expenditures incurred by the firm itself. Accordingly, the assumption that the level of innovation adoption is to some extent an endogenous process is brought to the fore.

An assessment of environmental sustainability corridor: The role of economic expansion and research and development in EU countries

This study examines the impact of research and development (R&D) expenditures on economic growth, with a focus on industrial development in Pakistan and a comparative analysis with developed countries. Despite being the sixth most populous country, Pakistan faces significant challenges in achieving sustained growth. Using a panel least squares regression model, this study analyzes the data of eight countries over a period of 25 years, including Pakistan and seven G7 nations i.e. France, the United States, the United Kingdom, Germany, Japan, Italy, and Canada. The correlation results reveal that R&D expenditures positively and significantly impact GDP across these countries. The GDPs of the G7 countries are significantly higher to Pakistan, highlighting the potential for substantial economic gains through increased R&D investment. The model shows a high R² and adjusted R², explaining 88.79% of the variation in GDP, with significant predictors including research expenditures and the lagged GDP into R&D expenditure. These findings suggest that for Pakistan, increasing R&D expenditure could lead to notable improvements in GDP and overall economic performance. Recommendations to increase government allocation to R&D, focusing on key industries such as textiles, automobile, electronics, technological advancement and infrastructure, and implementing policies that encourage private sector investment in R&D. Additionally, enhancing academic research and providing a roadmap for policymakers to foster industrial and economic development in Pakistan.

This critical analysis delves into the allocation and utilization of public expenditure in education across all levels in Bhutan, including primary, secondary, and higher education. The study aims to provide valuable insights into how public funds are distributed and used within Bhutan's education system. By conducting this analysis, we seek to identify strengths, weaknesses, and areas for improvement in education funding and policy-making to enhance the overall effectiveness of public investment in education for the betterment of Bhutan's educational system and its citizens. The research employs a secondary data research method, allowing for an in-depth analysis of extensive datasets without the need for primary data collection. This method ensures efficiency and enables researchers to gain valuable insights into the education system and its funding. In 2015, public expenditure on education accounted for 25.5% of the total government expenditure in Bhutan. This marked a substantial increase from the previous year's figure of 17%. This is a positive trend that indicates a growing commitment to education. Expenditure in primary education increased significantly, rising from 32% in the previous year to 57% in 2015. This highlights the government's emphasis on foundational education, which is crucial for building a strong educational base. Expenditure per student in secondary education showed fluctuations, with a figure of 53.9% in 2014. However, there was an overall upward trend in expenditure per student from 1971 to 2014. This suggests that while secondary education is receiving attention, there may be room for more consistent funding. Tertiary education received 10.3% of the expenditure in 2014, although there were fluctuations in funding over the years. Ensuring adequate funding for tertiary education is crucial, as it plays a vital role in producing a skilled workforce that can contribute significantly to the nation's development. The analysis reveals that public spending on education as a percentage of GDP experienced fluctuations, with some years witnessing significant increases or decreases. Consistent education funding is vital for Bhutan's socioeconomic progress. This analysis emphasizes the need for stable investment in primary, secondary, and tertiary education. It highlights the evolving budget priorities and underscores education's critical role in Bhutan's development. Policymakers should use these findings toensuresustained and balanced education investment forlong-termprosperity.