IDEAS home Printed from https://ideas.repec.org/a/aae/journl/v15y2019i1p13-34.html
   My bibliography  Save this article

R&D Expenditure and Innovation in the EU and Selected Member States

Author

Listed:
  • Radka MacGregor Pelikánová

    (Metropolitan University Prague, Dubečská 900/10, 100 31 Prague 10, Czech Republic)

Abstract

Sustainable development and competitiveness cannot be achieved in our highly competitive global society without innovations. Innovations are typically the result of a financially demanding research process generating intellectual property assets, namely patented inventions or ideas for the digital setting and protected by copyright or otherwise. The EU is aware of it and its current strategy, Europe 2020, states that 3% of GDP should be allocated to R&D by 2020 at the latest and this should boost innovation levels and make the EU a top global economic leader. Undoubtedly, innovation is indispensable and needs to be financed. However, the relation of involved factors and the related dynamic are unclear and have not received sufficient scientific and academic attention. To make an initial step to address this vacuum, three research questions are addressed. Firstly, what fraction of GDP goes towards R&D, expressed by GERD, and what is the GERD trend in the EU and selected EU member states? Secondly, how many European patent applications were filed and patents granted, what was the success rate and how has digitalization been progressing in the EU and selected EU member states and what are the trends? Thirdly, can the possibility of a relationship be implied? These three questions are answered based on multi-disciplinary research employing hard data sources, such as Eurostat and EPO databases, official and/or legislative documents, such as Europe 2020, academic literature along with direct observation, field search and the own experience of the author. Such a conglomerate of diversified and multi-disciplinary data is to be processed by a myriad of appropriately matching methods, both of a quantitative and qualitative nature, and dominated by the holistic Meta-Analysis. Indices and indicators, such as GERD, EPO statistics and DESI, are comparatively employed while observing their time evolution in the entire EU and selected EU members. Their selection is made by the motivation to be representative and to face the (alleged) cliché about EU member states labeled as “good” (DE, FR), “lazy” PIGS (PT, IT, GR, SP), leaving (GB), particular Scandinavian (DK, FI, SW) and central (AT, CZ, PL). This highly original study answers all three questions – (i) the 3% threshold is not met in the larger part of the EU, (ii) the number of patent applications and granted patents keep growing along with digitalization, and (iii) the possibility of a relationship between these factors and trends exists, but is not conclusive or dramatically strong. This generates a set of original suggestions, such as that the differences between EU member states regarding innovations do not vanish and that although the Europe 2020 3% threshold is not met, the number of patented inventions and the practical digitalization can still grow across the EU. Further and deeper research is needed and should help the EU to change its approach to innovations and make it more effective and efficient

Suggested Citation

  • Radka MacGregor Pelikánová, 2019. "R&D Expenditure and Innovation in the EU and Selected Member States," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 15(1), pages 13-34.
    • Handle: RePEc:aae:journl:v:15:y:2019:i:1:p:13-34
    DOI: 10.7341/20191511
    as

    Download full text from publisher

    File URL: http://jemi.edu.pl/uploadedFiles/file/all-issues/vol15/issue1/JEMI_Vol15_Issue1_2019_Article1.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.7341/20191511?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Adam P. Balcerzak, 2015. "Europe 2020 Strategy and Structural Diversity Between Old and New Member States. Application of zero-unitarizatin method for dynamic analysis in the years 2004-2013," Working Papers 122/2015, Institute of Economic Research, revised Apr 2015.
    2. Alina Mihaela Dima & Liviu Begu & Maria Denisa Vasilescu & Maria Alexandra Maassen, 2018. "The Relationship between the Knowledge Economy and Global Competitiveness in the European Union," Sustainability, MDPI, vol. 10(6), pages 1-15, May.
    3. Polcyn Jan, 2018. "Human development level as a modifier of education efficiency," Management, Sciendo, vol. 22(2), pages 171-186, December.
    4. Mehmet Çolak & Aylin Ege, 2013. "An Assessment of EU 2020 Strategy: Too Far to Reach?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(2), pages 659-680, January.
    5. Blind, Knut & Petersen, Sören S. & Riillo, Cesare A.F., 2017. "The impact of standards and regulation on innovation in uncertain markets," Research Policy, Elsevier, vol. 46(1), pages 249-264.
    6. Margarita Billon & Rocio Marco & Fernando Lera-Lopez, 2017. "Innovation and ICT use in the EU: an analysis of regional drivers," Empirical Economics, Springer, vol. 53(3), pages 1083-1108, November.
    7. Jože Damijan & Črt Kostevc & Matija Rojec, 2017. "Exporting status and success in innovation: evidence from CIS micro data for EU countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(5), pages 585-611, July.
    8. Lamberto Zollo & Riccardo Rialti & Cristiano Ciappei & Andrea Boccardi, 2018. "Bricolage and Social Entrepreneurship to Address Emergent Social Needs: A “Deconstructionist” Perspective," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 14(2), pages 19-48.
    9. De Noni, Ivan & Orsi, Luigi & Belussi, Fiorenza, 2018. "The role of collaborative networks in supporting the innovation performances of lagging-behind European regions," Research Policy, Elsevier, vol. 47(1), pages 1-13.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aghion, Philippe & Boneva, Lena & Breckenfelder, Johannes & Laeven, Luc & Olovsson, Conny & Popov, Alexander & Rancoita, Elena, 2022. "Financial Markets and Green Innovation," Working Paper Series 2686, European Central Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert K. MacGregor & Radka MacGregor Pelikánova, 2019. "Shareholder Engagement for Corporate Governance in the Light of the Harmonization and Transposition," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 22-34.
    2. Radka MacGregor Pelikánová & Robert K. MacGregor, 2020. "The EU Puzzling CSR Regime and the Confused Perception by Ambassadors of Luxury Fashion Businesses: A Case Study from Pařížská," Central European Business Review, Prague University of Economics and Business, vol. 2020(3), pages 74-108.
    3. Magdalena Radulescu & Aleksandra Fedajev & Crenguta Ileana Sinisi & Constanta Popescu & Silvia Elena Iacob, 2018. "Europe 2020 Implementation as Driver of Economic Performance and Competitiveness. Panel Analysis of CEE Countries," Sustainability, MDPI, vol. 10(2), pages 1-20, February.
    4. Małgorzata K. Guzowska & Barbara Kryk & Dorota Michalak & Paulina Szyja, 2021. "R&D Spending in the Energy Sector and Achieving the Goal of Climate Neutrality," Energies, MDPI, vol. 14(23), pages 1-25, November.
    5. Marek Walesiak & Grażyna Dehnel & Marek Obrębalski, 2021. "Assessment of the Europe 2020 Strategy: A Multidimensional Indicator Analysis via Dynamic Relative Taxonomy," Energies, MDPI, vol. 14(16), pages 1-20, August.
    6. Barbara Kryk & Małgorzata Klaudia Guzowska, 2021. "Implementation of Climate/Energy Targets of the Europe 2020 Strategy by the EU Member States," Energies, MDPI, vol. 14(9), pages 1-18, May.
    7. Radka MacGregor Pelikánová, 2019. "Corporate Social Responsibility Information in Annual Reports in the EU—A Czech Case Study," Sustainability, MDPI, vol. 11(1), pages 1-21, January.
    8. Eloy Solis & Kayvan Karimi & Irene Garcia & Inmaculada Mohino, 2022. "Knowledge Economy Clustering at the Intrametropolitan Level: Evidence from Madrid," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 1268-1299, June.
    9. Bahar, Dany & Choudhury, Prithwiraj & Rapoport, Hillel, 2020. "Migrant inventors and the technological advantage of nations," Research Policy, Elsevier, vol. 49(9).
    10. Alberto Tejero & Victor Rodriguez-Doncel & Ivan Pau, 2020. "Knowledge Graphs for Innovation Ecosystems," Papers 2001.08615, arXiv.org.
    11. Hervás-Oliver, José-Luis & Parrilli, Mario Davide & Rodríguez-Pose, Andrés & Sempere-Ripoll, Francisca, 2021. "The drivers of SME innovation in the regions of the EU," Research Policy, Elsevier, vol. 50(9).
    12. Massimiliano M. Pellegrini & Riccardo Rialti & Giacomo Marzi & Andrea Caputo, 2020. "Sport entrepreneurship: A synthesis of existing literature and future perspectives," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 795-826, September.
    13. Baicu Claudia Gabriela & Gârdan Iuliana Petronela & Gârdan Daniel Adrian & Epuran Gheorghe, 2020. "The impact of COVID-19 on consumer behavior in retail banking. Evidence from Romania," Management & Marketing, Sciendo, vol. 15(s1), pages 534-556, October.
    14. Liu, Weiwei & Song, Yifan & Bi, Kexin, 2021. "Exploring the patent collaboration network of China's wind energy industry: A study based on patent data from CNIPA," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    15. Deerfield, Amanda & Elert, Niklas, 2022. "Entrepreneurship and Regulatory Voids: The Case of Ridesharing," Working Paper Series 1426, Research Institute of Industrial Economics.
    16. Usai, A. & Fiano, F. & Messeni Petruzzelli, A. & Paoloni, P. & Farina Briamonte, M. & Orlando, B., 2021. "Unveiling the impact of the adoption of digital technologies on firms’ innovation performance," Journal of Business Research, Elsevier, vol. 133(C), pages 327-336.
    17. Argatu Ruxandra & Păunescu Carmen, 2019. "Romania and its poverty-alleviating competitiveness: a Central and Eastern European outlook," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 13(1), pages 435-447, May.
    18. Henryk Dźwigoł, 2021. "The Uncertainty Factor in the Market Economic System: The Microeconomic Aspect of Sustainable Development," Virtual Economics, The London Academy of Science and Business, vol. 4(1), pages 98-117, January.
    19. Cui Zhang & Xiongjin Feng & Yanzhen Wang, 2022. "Technology Spillovers among Innovation Agents from the Perspective of Network Connectedness," Mathematics, MDPI, vol. 10(16), pages 1-17, August.
    20. Mohammad Soltani Delgosha & Tahereh Saheb & Nastaran Hajiheydari, 0. "Modelling the Asymmetrical Relationships between Digitalisation and Sustainable Competitiveness: A Cross-Country Configurational Analysis," Information Systems Frontiers, Springer, vol. 0, pages 1-21.

    More about this item

    Keywords

    DESI; Europe 2020; GERD; innovation; intellectual property; R&D; research and development;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aae:journl:v:15:y:2019:i:1:p:13-34. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anna Ujwary-Gil (email available below). General contact details of provider: https://fundacjacognitione.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.