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Research and Development and Economic Growth: EU Port Regions

Author

Listed:
  • Gorana Mudronja

    (University of Rijeka, Faculty of Maritime Studies, Studentska ulica 2, 51000 Rijeka, Croatia)

  • Alen Jugoviæ

    (University of Rijeka, Faculty of Maritime Studies, Studentska ulica 2, 51000 Rijeka, Croatia)

  • Dunja Škalamera-Aliloviæ

    (University of Rijeka, Faculty of Economics and Business, Ivana Filipoviæa 4, 51000 Rijeka, Croatia.)

Abstract

Investment in research and development (R&D) creates preconditions for the implementation of more advanced and better technologies. It enables the introduction of new products or production processes which can result in higher earnings and potential economic growth. Even though research and development is a catalyst for the genesis of aggregate economic activity, its importance is not widely researched at regional levels. The European Union has defined strategies which view innovation as an essential element in stimulating growth and job creation. The aim of this paper is to establish and measure the impact of investment in R&D on economic growth of port regions. The data used in this research were panel data of the European Union’s port regions for NUTS 2 classification for the period from 2005 to 2015. The results of the two-step Generalized Method of Moments (GMM) indicate that investment in R&D has a significant impact on the economic growth of the port regions in European Union. However, in order for innovations to be accepted and implemented, it is also necessary for regions to have specific economic structure which was further analyzed in this paper. Regions with high innovation capacity create greater economic benefits and are considered to grow faster than other regions.

Suggested Citation

  • Gorana Mudronja & Alen Jugoviæ & Dunja Škalamera-Aliloviæ, 2019. "Research and Development and Economic Growth: EU Port Regions," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 37(2), pages 587-602.
    • Handle: RePEc:rfe:zbefri:v:37:y:2019:i:2:p:587-602
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    References listed on IDEAS

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    Cited by:

    1. Ernest Kay Bakpa & Hu Xuhua & Abigail Konadu Aboagye, 2021. "Ghana’s economic growth: Directing our focus on the contributing influences of innovation activities and trade," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2213-2237, December.

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    More about this item

    Keywords

    economic growth; investment in R&D; port regions; European Union;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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