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This study examines the innovation–growth nexus in the European Union (EU) countries over the period 1993–2011. The system generalised method of moments estimator was used to test whether patent activities and different research and development (R&D) outlays affect economic growth in the old (EU-15) and new (EU-13) member states differently. The au...
Citations
... Aghion and Howitt (1992) suggest that greater innovation due to patent protection leads to higher economic growth. This means that once a design has been produced, a firm can obtain a livedlife patent, which can provide incentives for more investment in R&D (Kacprzyk & Doryń, 2017). Adedoyin et al. (2022) used the ARDL model to examine the relationship between patent intensity and economic growth in South Africa from 1980 to 2020. ...
The purpose of this paper is to investigate how innovation is related to economic growth, and whether digitalization moderates this relationship. We examine this relationship using a two-step difference generalized method of moments (GMM) in a sample of 300 country-year observations from developed and developing economies from 2014 to 2019. The findings show that innovation is positively and significantly related to economic growth, but that this effect is stronger in high-income countries than in upper middle-income countries. The digital infrastructure and the digital market have positively and significantly moderated the relationship between innovation and economic growth for the high-income countries, but this effect is minimal for upper middle-income countries. The policy implications of this study suggest that policymakers in upper middle-income countries should invest more in the digital economy to increase economic competitiveness and growth. Furthermore, the findings suggest that policymakers and governments should improve regulations and policies to ensure that the benefits of digitalization are shared equally.
... Some key economic factors influencing innovation include economic growth, human capital, trade openness, and financial development. According to the innovation-based growth hypothesis, there is a positive correlation between innovation and economic growth, which has been investigated in many empirical studies (Kacprzyk & Doryń, 2017;Perez-Trujillo & Lacalle-Calderon, 2020;Pradhan et al., 2016). Besides, many empirical studies have identified a causal link between economic growth and innovation. ...
The launch of the African Continental Free Trade Area at the beginning of 2021 provides new opportunities for North African countries to boost their economies. To conquer this vast market, innovation has become an ineluctable need. Although competition policy may serve as a salient lever for enhancing innovation, it is still not well harnessed by North African economies, even though they have one of the oldest competition law regimes on the African continent. For this purpose, this article attempts to explore the relationship between competition and innovation in four North African countries from 1995 to 2019. The second generation of panel unit root and cointegration tests have been used in our study. Based on the estimations of the panel autoregressive distributed lag model, our findings show that competition positively impacts innovation in the long run. Furthermore, our empirical results demonstrate that innovation is positively affected by economic growth and financial development while negatively affected by human capital and trade openness in the long run. The causality analysis reveals a unidirectional causal relationship running from competition to innovation.
JEL Classification
C32, C33, K21, O30
... Naturally, differences in economic development cause not only different economic situations or structures across countries, but also differences in business management, especially among the owners. Kacprzyk and Doryń (2017) present a study on economic growth and innovation that finds there is no single way to ensure economic growth in all EU countries. Nowadays, intangible assets are one of the critical elements of firm performance (Haji and Ghazali, 2018), and there are also considered an essential instrument for tax planning (Griffith et al., 2014;Arcalean, 2017). ...
... Even if they close the R&D gap with the EU14, because of the environment which is not conducive, the marginal benefit of innovation will be suboptimal, which is why, R&D could not fulfil its role as a factor which is facilitating innovation and the absorption of technological spillovers. The absence of R&D significance for the new EU members is in line with Kacprzyk and Doryń (2017). The ICT has a negative impact on the TFP growth for ICT Notes: Robust standard errors in brackets. ...
... While Cheung (2014) focused on how innovation fosters GDP per capita, Maradana et al. (2017) explored the unidirectional as well as bidirectional causality between both variables using the Granger causality test. Kacprzyk and Doryń (2017) studied the relation between patent activities, as a measure of innovation, and economic growth in European Union countries. The research did not find a significant positive relation between the two variables. ...
... Nevertheless, the effect is weak; therefore, it cannot be considered a critical variable within the model or as a leverage factor to foster innovation within EU countries. This result is aligned with Kacprzyk and Doryń (2017). In future lines of research, the feedback hypothesis stated by Cetin (2013) and Pradhan et al. (2016) among other researchers will be pursued in order to study the potential bidirectional effects between both variables. ...
There exists ample literature on the effect of democracy on innovation, with mix results. The present study includes the variable good governance, to study its potential effect on innovation. The research main goal consists in building upon and going beyond existing research dedicated to fostering innovation by identifying key good governance indicators at a country and supranational level, and their potential synergies and interactions with variables that complete the new model. The methodology used for the statistical analysis is based on Partial Least Square Structural Equation Modelling (PLS-SEM), due to the exploratory nature of the study. The research analyzes interactions between good governance indicators, innovation, education, and democracy, along with gross domestic product per capita as a mediating variable. The findings reveal that good governance, education, and gross domestic product indicators have a positive effect on innovation within EU countries and supranational government-controlled institutions. Furthermore, the research identifies the mediation role of gross domestic product between good governance and innovation as well as between education and innovation and the critical role of management to promote good governance and innovation. Based on these findings and the study limitations, the research proposes specific policies to promote innovation.
... Kacprzyk and Doryn [23] investigated the relationship between innovation and economic growth in EU countries for the period of 1993-2011. The authors assessed whether patent activities and research and development expenditures affect old (EU-15) and new (EU-13) members differently. ...
... This result suggests that an increase in expenditures on research and development by 1% leads to an increase in the global innovation index by 0.643%. This long-run result is confirmed by [19] for the 103 EU regions, [20] for the 20 OECD economies, [22] for the 11 selected EU countries and [23] for the three main indicators of innovation in European countries. ...
In academic discussions about how to achieve sustainable growth in the world, it is stated that this is not possible without spending on research and development and innovative activities so that countries can maintain their competitiveness in the global environment. The EU has defined strategies that consider innovation as a key element for stimulating growth and creatung employment. In this context, this study examines the relationship between R&D expenditures and the global innovation index in the scope of EU countries. A PVAR model and annual data from 2007 to 2020 were used for the relationship between research expenditures and growth in the innovation of EU countries. We first examined the cross-sectional and cross-country homogeneity of slopes. The second-generation unit root test was then applied using the Pesaran CIPS (2007) test, and the ARDL panel model was applied to test for cointegration. Causal analyses with the panel ARDL model and the error correction model were applied to determine the relationships of the variables and their direction. For the long-term dynamic effects between variables, an impulse response function (IRF) was used, and for the degree of the effect between R&D expenditures and the global innovation index, variance decomposition was used. The results of this paper reveal a long-term positive significant relationship between R&D spending and the global innovation index, whereas in the short-term, this relationship is negative. Furthermore, the causality results of the error correction ARDL model show unidirectional short-run and long-run causality from research and development to the global innovation index in EU countries. Finally, this paper enhances the understanding of the relationship between research and development spending and the global innovation index in EU countries.
... İnovasyon büyüme ilişkisinin belirlenmesine yönelik yapılan bu çalışmalarda pozitif ve anlamlı bir ilişkinin olduğu sonucuna ulaşılmasına rağmen az sayıda da olsa ülkelere ve inovasyon göstergesine göre anlamsız bir ilişki (Birdsall & Rhee, 1993;Sylwester, 2001;Samimi & Alerasoul, 2009;Brenner, 2014;Kacprzyk & Doryń, 2017;Gelgeç & Hatırlı, 2018;Alheet & Hamdan, 2020;Belazreg & Mtar, 2020) ve negatif yönlü bir ilişki olduğu (Akinwale vd., 2012; Shukla, 2017; Çütcü & Bozan, 2019) sonucuna ulaşılan çalışmalardır. İnovasyon ve büyüme ilişkisine yönelik yapılan kapsamlı literatür araştırmasında, inovasyonu tam anlamıyla ifade edebilecek değişkenlerin ele alındığı çalışma sayısının oldukça az olduğu anlaşılmaktadır. ...
Ülkeler arası gelir farklılıkları iktisat biliminin temel inceleme alanına girmektedir. Ülkeler arasındaki bu farklılıkları yönlendiren unsurların ele alınması ülkelerin ekonomik yönden büyüyebilmesi ve kalkınabilmesi için anahtar faktörlerin belirlenmesi sürdürülebilir büyümenin tesis edilmesine katkı sağlayacaktır. Bu nedenle çalışmada, gelişmiş ve gelişmekte olan üst orta ve alt orta gelirli ülkelerde 2006-2017 dönemi için yönetişim, inovasyon ve ekonomik büyüme arasındaki ilişki incelenmiştir. Çalışmada ele alınan değişkenler arasındaki ilişki panel veri varsayımlarındaki sapmalara karşı dirençli bir tahminci olan Driscoll-Kraay tahmincisiyle test edilmiştir. Elde edilen sonuçlara göre; her üç ülke grubunda yönetişim ile büyüme arasında pozitif ve anlamlı bir ilişki, inovasyon ile büyüme arasında ise yalnızca gelişmekte olan üst orta gelirli ülkelerde pozitif ve anlamlı bir ilişki olduğu sonucuna ulaşılmıştır. Gelişmiş ve gelişmekte olan alt orta gelirli ülkelerde ise inovasyon ve büyüme arasında herhangi bir anlamlı ilişki tespit edilememiştir. Ayrıca yönetişim ve inovasyon ve büyüme ilişkisindeki aracılık etkisinin test edildiği araştırma modelinde ise her üç ülke grubunda da yönetişim ve inovasyonun büyüme üzerinde pozitif ve anlamlı bir etkisinin olduğu sonucuna ulaşılmıştır
... In contrast, (Bilas et al., 2016) found a negative relationship between innovation and economic growth in their research for 28 European countries from the period 2003-2013. Finally, other researchers are yet to identify a causal relationship between the two variables (Samimi and Alerasoul, 2009;Kacprzyk and Doryń, 2017) . Research has also shown that economic growth can increase the level of innovation. ...
The corruption-economic growth nexus and the relationship between innovation and corruption have long been extensively studied. While individual issues have been empirically analysed, two effects have not yet been sufficiently researched: 1) the
overall effect of innovation on the corruption-growth relationship and 2) the direction of causality between these variables. The present article used data from 109 countries over the 2010–2018 period and focused on the macro level. We employed Granger
causality tests for panel data (Dumitrescu-Hurlin) to determine the direction of causation among variables. We also employed nonstationary panel techniques with Fully Modified Ordinary Least Square (FM-OLS) to assess stationarity and long-run
relationships. After investigating the direct impact of corruption on economic growth, we then examined the indirect effect through different transmission channels, including
innovation. The results were tested and found robust in subcategories based on the developmental and regional levels. Finally, this study analysed the impact of innovation
on the relationship between corruption and economic growth. The results indicated a robust negative relationship between corruption and economic growth and corruption and innovation. The findings also revealed a positive relationship between innovation and economic growth and a bi-directional causality between the variables. Furthermore, innovation was found to reduce the harmful effects of corruption on economic growth,
mainly in developed countries.
... Thus, the accumulation of new knowledge, the product of innovative activities by forward-looking, profit-maximizing agents augments industrial development (Azevedo, Silva & Afonso, 2012). Kacprzyk and Dpryn (2017) maintain that stronger IPR protects innovation against infringement and imitation. IPR has a prominent role in the endogenous growth theory through increasing innovation and accumulation of knowledge through the discovery of new techniques of production and machinery that can aid industrial development. ...
The incidence of infringement and violation of intellectual property rights (IPRs) especially in the nature of counterfeiting and piracy has been on the increase in Nigeria; and has deprived many producers and industrialists of the benefits of their creativity. This study explores how IPRs protection influences industrial development in Nigeria using quarterly data spanning 2007Q2 and 2019Q1. The result of Autoregressive Distributed Lag model reveals that IPRs protection exerts negative effects on industrial development due to weak enforcement and non-compliance with industry-related IPRs laws which discourage individuals and firms to develop new commercializable inventions and innovations. Based on this finding, we conclude that IPRs protection cannot significantly improve the prospects of industrial development if not properly enforced with total compliance in Nigeria. Therefore, we recommend that government should strengthen IPRs laws with formidable policies that would create incentives for firm-level
innovations/inventions through knowledge creation, and adequate funding for R&D in Nigeria.
Keywords: Intellectual Property Rights; Protection; Industrial Development; Nigeria.
JEL Classification: O14, O34, O40
... Knowledge flows -that is, spillovers -are economically significant; nevertheless, their effect is rather inconspicuous and generally characterised by international technology transfers (Kacprzyk & Doryń, 2017;Lee, 2021). More comprehensive access to knowledge may reduce future costs and the need to recreate what already exists elsewhere. ...
Our extensive literature review shows that innovations are fundamental to maintaining competitiveness at both micro- and macro-economic levels. In this study, we address how to improve the measurement of innovations and their impact on a country’s competitiveness and economic growth. We provide an overview of indicators used to measure innovations and propose three new ones that are supposed to capture knowledge spillover: The Foreign Knowledge Inflow, Domestic Knowledge Outflow, and General Propensity to Patent. Innovation was proxied by the number of patent applications, which we supplemented with indexes measuring the origin of knowledge and its transfer. We employed the system GMM method on panel data of 56 countries for 2002–2019 to confirm and compare the informational value of standard innovation indicators and our indexes. Implementation of indexes revealed the counteracting impact of patenting on economic growth when the positive effect of innovation creation is weakened by knowledge disclosure. We provide evidence that a low propensity to patent facilitates growth. The impact of foreign knowledge on an economy is dependent on its technological capacity. The infusion of foreign knowledge boosts the growth of fast-growing economies but inhibits the growth of less technologically sophisticated ones. This supports our assumption that when researching the impact of innovations on economic growth, it is crucial to consider additional factors. Hence, index implementation appears to be the correct method.
