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Innovation and Economic Growth in European Union. Panel Data Analysis

Author

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  • Andrzej Kacprzyk

    (University of Lodz, Faculty of Economics and Sociology)

  • Wirginia Doryn

    (University of Lodz, Faculty of Economics and Sociology)

Abstract

This study examines the relationship between technological innovation and economic growth in European Union countries over the period 1993-2011. Using Blundell and Bond (1998) generalized method of the moments estimation technique, the study provides evidence that R&D expenditures and patent activities differ in terms of fostering economic growth between EU-15 and EU-13 countries. The main results indicate that there is no significant impact of R&D expenditures on the economic growth and that patent activities determine economic growth in EU-13 subsample and EU-28 as a whole. The study suggests that there may be no one particular recipe for growth for all EU countries and put into question whether setting common numerical targets in EU’s innovation policy makes economic sense

Suggested Citation

  • Andrzej Kacprzyk & Wirginia Doryn, 2014. "Innovation and Economic Growth in European Union. Panel Data Analysis," Lodz Economics Working Papers 3/2014, University of Lodz, Faculty of Economics and Sociology, revised Jun 2015.
    • Handle: RePEc:ann:wpaper:3/2014
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Economic growth; innovation; R&D; patents; panel data;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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