Estimation of Innovation Value Adding Effect on the National Economy Development

The 19th World Multi-Conference on Systemics, Cybernetics and Informatics (WMSCI 2015): Proceedings. Vol.1 2015
Jūlija Bistrova, Nataļja Lāce, Z. Atygayeva

Neoclassical economic theory states that the growth of the nation primarily is dependent on the innovation potential of the country. However, this theory is often being refuted by the recent empirical research, proving that the innovations are becoming more cost-extensive, late in generating return on invested capital and not as useful as they used to be. The present study researches the effect of innovation on the EU member-countries economic development, having selected R&D expenses, number of patents and number of researchers as innovation proxies. The results prove that there is a strong relationship between the R&D expenses and GDP growth as well as the labour productivity, but no evidence was found that the number of scientists or the number of patents significantly influence economic development of the country.

Keywords
R&D expenses, number of patents, innovations value added, economic development
Hyperlink
http://www.iiis.org/CDs2015/CD2015SCI/SCI_2015/PapersPdf/SA518GK.pdf

Bistrova, J., Lāce, N., Atygayeva, Z. Estimation of Innovation Value Adding Effect on the National Economy Development. In: The 19th World Multi-Conference on Systemics, Cybernetics and Informatics (WMSCI 2015): Proceedings. Vol.1, United States of America, Orlando, 12-15 July, 2015. Winter Garden: International Institute of Informatics and Systemics (IIIS), 2015, pp.39-44. ISBN 978-1-941763-24-7.

Publication language
English (en)