Role of Science and Technology in Business Growth

Abstract

Innovation performance is a crucial determinant of competitiveness andnational progress. Moreover, innovation is important to help address global challenges, such as climate change and sustainable development. the application of advances in technology, in conjunction with entrepreneurship and innovative approaches to the creation and delivery of goods and services, which translates scientific and technological advances into more productive economic activity. This results in economic growth if market structures and the regulatory environment enable the more productive activities to expand. This said, the innovative effort itself, including formal research and development, remains the sine qua non of growth. Lithuania is a small and catching up economy with a GDP per capita of 52.1% of EU average. The current level of labor productivity (per person employed) in Lithuania is low, accounting only for 53.2% of EU 25 average. Lithuania is lagging behind the average of EU countries in terms of gross expenditure on R and D -in 2005 only 0.76% of GDP invested in R and D (EU average is 1,85%) underestimate expenditure of private companies in RandD?