<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Background:</bold> The intensity of innovation could often be crucial for further economic development of the regions. Science and technology are often seen as the key factor supporting innovation in the regions. Furthermore, we can assume that higher intensity of research activities could lead to better economic performance.<bold>Objectives:</bold> Research aims to examine the link between the economic performance of the region and the intensity of science and technology activities, proxied by the share of employees in science and technology.<bold>Methods/Approach:</bold> The analysis is based on panel data for NUTS2 regions of the European Union (EU) member states. We conducted correlation analysis, panel Granger causality tests and regression analysis.<bold>Results:</bold> Our results suggest the existence of a significant positive correlation between GDP per capita and the share of employees in science and technology. Moreover, the regions with a higher intensity of science and technology activities are mostly characterized by relatively low unemployment rates.<bold>Conclusions:</bold> Research activities are positive correlated with regional GDP and negatively correlated with unemployment. However, increasing the share of employment in science and technology beyond a certain turning point would not lead to any further positive effects on regional economic performance.</abstract>

Background: The intensity of innovation could often be crucial for further economic development of the regions. Science and technology are often seen as the key factor supporting innovation in the regions. Furthermore, we can assume that higher intensity of research activities could lead to better economic performance.Objectives: Research aims to examine the link between the economic performance of the region and the intensity of science and technology activities, proxied by the share of employees in science and technology.Methods/Approach: The analysis is based on panel data for NUTS2 regions of the European Union (EU) member states. We conducted correlation analysis, panel Granger causality tests and regression analysis.Results: Our results suggest the existence of a significant positive correlation between GDP per capita and the share of employees in science and technology. Moreover, the regions with a higher intensity of science and technology activities are mostly characterized by relatively low unemployment rates.Conclusions: Research activities are positive correlated with regional GDP and negatively correlated with unemployment. However, increasing the share of employment in science and technology beyond a certain turning point would not lead to any further positive effects on regional economic performance.

Research Activities and their Relation to Economic Performance of Regions in the European Union

Business Systems Research Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Background: The intensity of innovation could often be crucial for further economic development of the regions. Science and technology are often seen as the...

Research Activities and their Relation to Economic Performance of Regions in the European Union

Published Online: Apr 25, 2018

Page range: 44 - 54

Received: Dec 04, 2017

Accepted: Feb 16, 2018

DOI: https://doi.org/10.2478/bsrj-2018-0004

Keywords
science and technology, regional development, university education, innovation, economic development

© 2018 Vladimir Hiadlovsky et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Research Activities and their Relation to Economic Performance of Regions in the European Union

Published Online: Apr 25, 2018

Page range: 44 - 54

Received: Dec 04, 2017

Accepted: Feb 16, 2018

DOI: https://doi.org/10.2478/bsrj-2018-0004

Keywordsscience and technology, regional development, university education, innovation, economic development

© 2018 Vladimir Hiadlovsky et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
science and technology, regional development, university education, innovation, economic development