Abstract
The article analyzes the impact of knowledge generating investments on the economic growth. It was found that the main investment cash flows are intangible, education, research and development costs. Since in Lithuania the core capital is mainly formed from tangible assets and intangible assets constitute only a small part of an emerging capital, the largest part of investment goes to education, research and development, while the smallest one – to intangible assets. The research is intended to support the impact of knowledge generating investments impact on GDP growth, interconnection and level of significance.
Highlights
Since in Lithuania the core capital is mainly formed from tangible assets and intangible assets constitute only a small part of an emerging capital, the largest part of investment goes to education, research and development, while the smallest one – to intangible assets
If intangible investment increased by 1 % from the average 5.37 million LTL, gross domestic product (GDP) should increase by 11. 4 % from the average, i.e., 8 588 million LTL; If educational costs increased by 1% from the average 43.92 million LTL, GDP should increase by 33.6 % from the average, i.e., 25 313 million LTL; If research and development increased by 1% from the average 22.66 million LTL, GDP should increase by 6.7 % from the average, i.e., 5 048 million LTL
Main knowledge value creating investment, such as intangible, education, research and development is analyzed in the research literature
Summary
The importance of knowledge in the current competitive environment and knowledge creation process in order to emphasize competitive advantage is noticed by the researchers [3], [4], [11], [13], [15], [16], [20], [21], [24], [28] and by national and international organizations: the World Bank, the European Commission, Organization of Economic Cooperation and Development, the World Economic Forum, Science and Education Monitoring and Analysis Centre, the Knowledge Economy Forum and others. In 2012 World Intellectual Property Organization (WIPO) published “Global Innovation Index” which ranked Lithuania in the 38 position out of 141 rated countries, even more, Lithuania was behind Estonia (position 19) and Latvia (position 30) This index showed that Lithuania had relatively good conditions for innovation: physical infrastructure, educated people, good regulatory environment, it had not yielded the expected results: patents, published scientific articles, new start-ups, bigger amount of high technology goods and services in the total export. This article is based on systematic science literature analysis, general and logical analysis, synthesis, analogy, generalization, classification, cataloguing, comparison methods, correlation and regression analysis
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