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STEM Education and Growth in Europe

Author

Listed:
  • Maja Bacovic

    (University of Montenegro)

  • Zivko Andrijasevic

    (University of Montenegro)

  • Bojan Pejovic

    (University of Montenegro)

Abstract

The share of STEM programs graduates in relation to the total tertiary graduates declined in Europe for the past two decades, although the expenditures for education and share of tertiary education graduates in total population increased, respectively. The quality of education, measured with the sample mean PISA scores, was almost equal to its 2000 value, lacking improvements. Simultaneously, GDP per person growth rate declined in Europe, the structural changes occurred, with growing share of the services and diminishing of the goods sectors. The share of the high-knowledge manufacturing in relation to GDP declined, which is the subsector with the highest average annual output and productivity growth rates. In services, the share of the knowledge-intensive services, respectively, increased. The descriptive statistics analysis shows strong linear association among the science and technical education, output’s structure, income per person and productivity growth. Applying the panel least square (fixed and random effects) model on the sample of thirty-five European countries and period from 1995 to 2019, we found significant contribution by STEM educated workers to output growth. Contribution to output growth by tertiary educated employees and the outcome of the investment in research and development in the high-knowledge manufacturing and knowledge-intensive services were above all sectors’ average. This is relevant as output and employment growth in these sectors surpass the same in other sectors, therefore contributing to higher income per persons and GDP growth. As STEM skills and investment in research and development have positive impact on GDP per person growth and productivity, its growth is indispensable to foster economic progress.

Suggested Citation

  • Maja Bacovic & Zivko Andrijasevic & Bojan Pejovic, 2022. "STEM Education and Growth in Europe," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2348-2371, September.
    • Handle: RePEc:spr:jknowl:v:13:y:2022:i:3:d:10.1007_s13132-021-00817-7
    DOI: 10.1007/s13132-021-00817-7
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    References listed on IDEAS

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