Impact of R&D and Innovation on High-tech Export

Abstract

Economic recovery and the re-launching of sustainable economic growth in EU, particularly in countries such as Romania, are to a large extent sustained by the stimulation of exports and, especially, high-tech exports. Different authors have proved, in theoretical as well as empirical approaches, the relation between some indicators of innovation performance and volume and performance of high-tech exports. In this paper, we intend to assess, at the European level, the relationship between medium and high-tech exports, on one hand, and some of the main determinants of innovation, on the other hand. The volume of research-development expenditure, both public and private, the human resources employed in knowledge intensive activities or the propensity for international commercial relation have been assumed as important causal factors for increasing high tech export in EU countries. The results of the econometric analysis conducted in this paper confirm a causal relationship between the independent variables mentioned above and the EU high-tech exports level. The specific variations at country level are also displayed. Research results also confirm a positive correlation between total R&D expenditure volume and the level of high-tech exports, with variability between countries. The influence of private R&D expenditure on high-tech exports is stronger than public R&D expenditure. Under current European and national policies for increasing the intensity of R&D funding, raising the average EU level of R&D expenditure to the target of 3% of GDP, and particularly the EU average of private R&D expenditure to 2% of GDP, may significantly boost exports and competitiveness. Romanian export policy and R&D and innovation policy should be correlated in order to maximize effects in both policy fields.