INNOVATION AND INVENTION IN THE EU BUSINESS SECTOR: THE ROLE OF THE RESEARCH AND DEVELOPMENT EXPENDITURES
The article deals with the problems of business innovation and inventions in the EU countries with a focus on the potential effects of business R&D expenditure. Since the business is considered an essential sector concerning innovation, business R&D expenditure can play a significant role in...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Croatian Interdisciplinary Society
2021-06-01
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| Series: | Interdisciplinary Description of Complex Systems |
| Subjects: | |
| Online Access: | https://www.indecs.eu/2021/indecs2021-pp168-188.pdf |
| Summary: | The article deals with the problems of business innovation and inventions in the EU countries with a focus on the potential effects of business R&D expenditure. Since the business is considered an essential sector concerning innovation, business R&D expenditure can play a significant role in their creation. However, several obstacles hinder the successful transformation of R&D expenditures into invention or innovation. R&D expenditures as any other type of business investments are associated with a certain risk. In this case, the risk of failure can be even higher due to their long-term nature and complexity. The article aims at an examination of the short-run and long-run relationship between business R&D expenditure, on one hand, an invention, and innovation on the other. To achieve this, the tests of Granger causalities and panel cointegrated regression has been applied on macro-level data. Furthermore, the structure of R&D expenditure in EU countries has been also examined. The results suggest a positive correlation between business R&D expenditure and innovation activities as well as the positive causal effect of business R&D expenditure on patenting in the long run. |
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| ISSN: | 1334-4684 1334-4676 |