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Assessment of the Effectiveness of Investment in R&D by European Union Countries

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  • Romualdas Ginevicius

    (Faculty of Public Management and Business, Mykolas Romeris University, Vilnius, Lithuania)

Abstract

Investment in R&D today is an essential condition for the economic development of companies, industry as a whole and countries and regions. On the other hand, the financial capacity of economic operators is limited and it is important to know the benefits of these investments. In this context, the problem of their effectiveness is of particular importance. An adequate picture is provided by the analysis of the overall R&D process and its components – the impact on the creation of new knowledge; the impact of the new knowledge expressed in patents on the investment; the impact of innovation on the country’s economic development. The study highlighted the following patterns: The developed countries of the European Union are characterised by higher R&D investment compared to developing countries, a significantly higher number of patent applications and the higher Global innovation index values. A different picture is with the effectiveness of R&D investment. Both patents and the entire investment processes are more efficient in the developing countries. This is due to a significant increase in patent sales in developed countries, a more decentralized innovation policy, i.e. significantly higher exports to other countries. All this distorts the picture of the actual effectiveness of R&D investments.

Suggested Citation

  • Romualdas Ginevicius, 2023. "Assessment of the Effectiveness of Investment in R&D by European Union Countries," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(62), pages 251-251, February.
    • Handle: RePEc:aes:amfeco:v:25:y:2023:i:62:p:251
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    References listed on IDEAS

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    1. Hall, Bronwyn H & Griliches, Zvi & Hausman, Jerry A, 1986. "Patents and R and D: Is There a Lag?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(2), pages 265-283, June.
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    More about this item

    Keywords

    investment in R&D; efficiency; European Union countries.;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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