Open Access
Article
SciPap-1209
Innovation Processes and Economic Growth in the Context of European Integration
1 Department of Innovation and Investment Management, Taras Shevchenko National University of Kyiv, Vasylkivska 90A, Kyiv 03022, Ukraine
2 Department of Economic Cybernetics, Taras Shevchenko National University of Kyiv, Vasylkivska 90A, Kyiv 03022, Ukraine
3 Department of Economic Cybernetics, Taras Shevchenko National University of Kyiv, Vasylkivska 90A, Kyiv 03022, Ukraine
4 Economics, WUNU, Lvivska 11, Ternopil 46000, Ukraine
5 European University, Ivane Javakhishvili Tbilisi State University, 1 Ilia Chavchavadze Avenue, Tbilisi 0179, Georgia
6 Enterprise Economy and Management Department, Academy of Labour, Social Relations and Tourism, Kiltseva doroha 3A, Kyiv 03187, Ukraine
* Authors to whom correspondence should be addressed.
Abstract: The paper explores the influence of innovations on economic growth in countries, which are candidates to membership in the European Union. For empirical research, we have chosen nine countries such as Albania, Bosnia and Herzegovina, Georgia, Montenegro, North Macedonia, Serbia, Moldova, Turkey, and Ukraine. To investigate the impact of innovation factors on economic performance we have constructed three panel data models with fixed effects. The results of models estimation show ICT service exports (% of total service exports) and number of researchers in R&D (per million people) affect GDP per capita of the countries – candidates for membership in the EU with a lag of one year. Besides this, all control variables are significant except government expenditure on education. Given the ceteris paribus clause, an increase in the ICT service exports by 1% will lead to the rise of GDP per capita by minimum 0.09 and maximum 0.16 percent points. At the same time, an increase in the number of researches in R&D with a lag 1 by 1% – to the rise of GDP per capita by minimum 0.22 and maximum 0.25 percent points. Insignificance of high-technology exports and patent applications of residents and significance of ICT service exports and number of researchers in R&D in countries – candidates for membership in the EU might indicate that these countries are ones with preferably low-processed exports but potential for driving the innovations production activities
Keywords: Economic Growth, European Union, Innovations, High-Technology Exports, Panel Data Models
JEL classification: E01 - Measurement and Data on National Income and Product Accounts and Wealth • Environmental Accounts, E62 - Fiscal Policy, O11 - Macroeconomic Analyses of Economic Development, O30 - General, O41 - One, Two, and Multisector Growth Models, O52 - Europe
Received: 5 December 2020 / Accepted: 4 January 2021 / Published: 11 January 2021
