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The effects of private sector companies’ research and development investments on the adoption of cloud computing services in the European Union

Author

Listed:
  • Liviu Toader

    (The Bucharest University of Economic Studies)

  • Dorel Paraschiv

    (The Bucharest University of Economic Studies)

  • Vasile Dinu

    (The Bucharest University of Economic Studies)

  • Daniela Manea

    (The Bucharest University of Economic Studies)

  • Mihaela Mihai

    (The Bucharest University of Economic Studies)

Abstract

As European economies rely more and more on know-how and technology, the importance of investment in research and development, especially from the private sector, is increasing. Private investment in research and development leads to innovation and the creation of know-how and technologies that can increase productivity, competitiveness and contribute to economic growth. Private investment in research and development is particularly important in dynamic sectors with high added value, such as the IT&C sector. Cloud computing is one of the most popular IT&C technologies in recent years, particularly because it bridges the gap between large and small and medium-sized companies in terms of IT&C infrastructure investment needs. Due to cloud computing, small companies can benefit from the same technology and infrastructure as the bigger ones, but at lower costs, without having to make large-scale investments in IT&C infrastructure elements such as: computing power, networks, data storage, specialized software products, etc. This paper analyzes the link between the intensity of investments in research and development (R&D), calculated as the share of research and development expenses made by companies in the business environment (business enterprise sector) in GDP or as a percentage of total research and development expenses, in relation to the adoption of cloud computing technology within companies in the Member States of the European Union. The research results indicate a direct and moderate relationship between the intensity of private R&D spending and the adoption of cloud computing technologies among companies in the Member States. This result can be attributed to both the increase in the overall digitization of the countries most active in terms of private R&D investment, as well as the need for affordable and strong IT&C infrastructure to maximize future returns and drive economic growth.

Suggested Citation

  • Liviu Toader & Dorel Paraschiv & Vasile Dinu & Daniela Manea & Mihaela Mihai, 2023. "The effects of private sector companies’ research and development investments on the adoption of cloud computing services in the European Union," E&M Economics and Management, Technical University of Liberec, Faculty of Economics, vol. 26(2), pages 189-202, June.
    • Handle: RePEc:bbl:journl:v:26:y:2023:i:2:p:189-202
    DOI: 10.15240/tul/001/2023-2-012
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    References listed on IDEAS

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    1. Aysit Tansel & Zeynel Abidin Ozdemir, 2018. "Unemployment invariance hypothesis, added and discouraged worker effects in Canada," International Journal of Manpower, Emerald Group Publishing Limited, vol. 39(7), pages 929-936, October.
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    More about this item

    Keywords

    Research and development; cloud computing; private companies; correlation and regression analysis; European Union;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

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