Innovation Versus Income Convergence In Central And Eastern Europe. Is There A Correlation?
AbstractThe heterogeneity of response of the different economies facing the world economic crisis has brought into attention once again the issue of convergence inside the European Union. The high growth rates experienced by CEEC during the last decade created an optimistic view of rapid convergence towards Western Europe. But the crisis showed that the sources of economic growth in the region were not appropriate for a long run growth. Innovation is a key source of competitiveness and a contributor to a sustainable growth path. Even though CEEC lag behind other European countries in terms of R&D investment, a certain progress can be observed. The objective of the present paper is to establish if there is a correlation between the convergence in terms of GDP and the convergence in terms of innovation for the CEEC. Based on yearly Eurostat data for the period 1998-2008, we quantify the progress of each of the 10 CEEC both in closing the income gap and the innovation gap. We then rank the countries according to their speed of convergence and perform a Spearman rank correlation analysis. The results show that, on average, convergence in R&D is not correlated with convergence in GDP. The Czech Republic is the only country with a positive correlation between R&D intensity and GDP growth. Bulgaria, Hungary and Slovakia show a negative relationship between investment in R&D and economic growth. This implies that for most of the countries in Central and Eastern Europe, economic growth during the period 1998-2008 was mostly driven by non-innovation factors.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Oradea, Faculty of Economics in its journal The Journal of the Faculty of Economics - Economic.
Volume (Year): 1 (2011)
Issue (Month): 1 (July)
Contact details of provider:
Postal: Universitatii str. 1, Office F209, 410087 Oradea, Bihor
Fax: 004 0259 408409
Web page: http://anale.steconomiceuoradea.ro/
More information through EDIRC
convergence; growth; innovation; R&D;
Find related papers by JEL classification:
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Narula, Rajneesh, 2009. "Attracting and embedding R&D by multinational firms: policy recommendations for EU new member states," MERIT Working Papers 033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Rachel Griffith & Stephen Redding & John Van Reenen, 2000.
"Mapping the two faces of R&D : productivity growth in a panel of OECD industries,"
LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library
784, London School of Economics and Political Science, LSE Library.
- Rachel Griffith & Stephen Redding & John Van Reenen, 2004. "Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 883-895, November.
- Rachel Griffith & Stephen Redding & John Van Reenen, 2000. "Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries," CEP Discussion Papers, Centre for Economic Performance, LSE dp0458, Centre for Economic Performance, LSE.
- Rachel Griffith & Stephen Redding & John Van Reenen, 2000. "Mapping the two faces of R&D: productivity growth in a panel of OECD industries," IFS Working Papers, Institute for Fiscal Studies W00/02, Institute for Fiscal Studies.
- Griffith, Rachel & Redding, Stephen J & Van Reenen, John, 2000. "Mapping The Two Faces Of R&D: Productivity Growth In A Panel Of OECD Industries," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2457, C.E.P.R. Discussion Papers.
- Bart van Ark & Marcin Piatkowski, 2004.
"Productivity, innovation and ICT in Old and New Europe,"
International Economics and Economic Policy, Springer,
Springer, vol. 1(2), pages 215-246, January.
- Ark, Bart van & Piatkowski, Marcin, 2004. "Productivity, innovation and ICT in old and new Europe," GGDC Research Memorandum, Groningen Growth and Development Centre, University of Groningen 200469, Groningen Growth and Development Centre, University of Groningen.
- Bruno Pottelsberghe de la Potterie, 2008.
"Europe's R&D: Missing the Wrong Targets?,"
Intereconomics: Review of European Economic Policy, Springer,
Springer, vol. 43(4), pages 220-225, July.
- Oleh Havrylyshyn, 2001. "Recovery and Growth in Transition: A Decade of Evidence," IMF Staff Papers, Palgrave Macmillan, vol. 48(4), pages 4.
- Slavo Radosevic, 2004. "A Two-Tier or Multi-Tier Europe? Assessing the Innovation Capacities of Central and East European Countries in the Enlarged EU," Journal of Common Market Studies, Wiley Blackwell, Wiley Blackwell, vol. 42(3), pages 641-666, 09.
- Adina Popovici (Bărbulescu), 2011. "Human Capital and Higher Education in Romania in the Last Years," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, University of Petrosani, Romania, vol. 11(1), pages 207-214.
- Popovici (Barbulescu) Adina, 2012. "Considerations Regarding Romanian Higher Education Graduates," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 377-383, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catalin ZMOLE).
If references are entirely missing, you can add them using this form.