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Does research and development expenditure impact innovation? theory, policy and practice insights from the Greek experience

Author

Listed:
  • Ioannis Voutsinas

    (Bank of Greece)

  • Constantinos Tsamadias

    (Harokopio University)

  • Elias Carayannis

    (George Washington University)

  • Christos Staikouras

    (Athens University of Economics and Business)

Abstract

This study empirically investigates the causal relationship between research and development (R&D) expenditure and innovation in Greece, during the period 1981–2009. It uses time series analysis, the theoretical background of the endogenous knowledge-based growth theories and the annual number of patent applications to the European Patent Organization as proxy of innovation activity. The Johansen method is applied to examine the possibility of co-integration. The results confirm the presence of a long-run relationship between R&D expenditure and innovation. The total and private R&D expenditure appear to have a positive effect on total and business innovation. In addition, the public R&D expenditure has a positive influence on business and total innovation, which indicates the existence of significant externalities of public sector research. The long-run elasticity of innovation with respect to R&D expenditure is estimated to be, on average, 1.9. Implications for public policies and related practices are formulated.

Suggested Citation

  • Ioannis Voutsinas & Constantinos Tsamadias & Elias Carayannis & Christos Staikouras, 2018. "Does research and development expenditure impact innovation? theory, policy and practice insights from the Greek experience," The Journal of Technology Transfer, Springer, vol. 43(1), pages 159-171, February.
    • Handle: RePEc:kap:jtecht:v:43:y:2018:i:1:d:10.1007_s10961-015-9454-3
    DOI: 10.1007/s10961-015-9454-3
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    5. Pegkas, Panagiotis & Staikouras, Christos & Tsamadias, Constantinos, 2019. "Does research and development expenditure impact innovation? Evidence from the European Union countries," Journal of Policy Modeling, Elsevier, vol. 41(5), pages 1005-1025.
    6. Benzaim, Samia & Ftiti, Zied & Khedhaouria, Anis & Djermane, Rebai, 2023. "US foreign investments: Technology transfer, relative backwardness, and the productivity growth of host countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 275-295.
    7. Ján Huòady & Peter Pisár, 2021. "Innovation and invention in the EU business sector: the role of the R&D expenditures," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 19(2), pages 168-188.
    8. Kamil Decyk, 2024. "Innovative Activity of the Service Sector of the EU Member States," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 6969-6994, June.
    9. Wen, Jun & Wang, Siqin & Yang, Xiuyun & Zhou, Xiaozhou, 2023. "Impacts of epidemics on innovation: An empirical analysis," Technovation, Elsevier, vol. 119(C).

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    More about this item

    Keywords

    Expenditure; Research and development; Innovation; Public policy; Greece;
    All these keywords.

    JEL classification:

    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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