<abstract xmlns="http://www.w3.org/1999/xhtml"><p> This paper focuses on investment in research and development as a factor of labour productivity and economic growth. Our analysis confirms the link between expenditure for research and development (expressed in % of GDP) and labour productivity (expressed in the number of hours worked) based on selected data for EU Member States in the period 1995-2013. A causal link between variables of the concave parabola was confirmed, and the value of expenditure for research and development (2.85% of EU GDP) maximising productivity (per hour of work) was determined based on the examined data. In accordance with these findings, EU’s target of reaching 3% of GDP spent on research and development to be achieved by 2020 seems in support of reaching maximum productivity in the EU.</p></abstract>

This paper focuses on investment in research and development as a factor of labour productivity and economic growth. Our analysis confirms the link between expenditure for research and development (expressed in % of GDP) and labour productivity (expressed in the number of hours worked) based on selected data for EU Member States in the period 1995-2013. A causal link between variables of the concave parabola was confirmed, and the value of expenditure for research and development (2.85% of EU GDP) maximising productivity (per hour of work) was determined based on the examined data. In accordance with these findings, EU’s target of reaching 3% of GDP spent on research and development to be achieved by 2020 seems in support of reaching maximum productivity in the EU.

Productivity and Economic Growth in the European Union: Impact of Investment in Research and Development

Naše gospodarstvo/Our economy

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

This paper focuses on investment in research and development as a factor of labour productivity and economic growth. Our analysis confirms the link between...

Productivity and Economic Growth in the European Union: Impact of Investment in Research and Development

Published Online: Mar 28, 2018

Page range: 18 - 27

Received: Feb 01, 2018

Accepted: Feb 01, 2018

DOI: https://doi.org/10.2478/ngoe-2018-0003

Keywords
investment in research and development, productivity, economic growth, correlation, panel analysis

© 2018

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Productivity and Economic Growth in the European Union: Impact of Investment in Research and Development

Published Online: Mar 28, 2018

Page range: 18 - 27

Received: Feb 01, 2018

Accepted: Feb 01, 2018

DOI: https://doi.org/10.2478/ngoe-2018-0003

Keywordsinvestment in research and development, productivity, economic growth, correlation, panel analysis

© 2018

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
investment in research and development, productivity, economic growth, correlation, panel analysis