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

Andreja Nekrep; Sebastjan Strašek; Darja Boršič

Andreja Nekrep
Sebastjan Strašek
Darja Boršič

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

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.

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Author Biographies

Andreja Nekrep

PhD student at the Faculty of Economics and Business, University of Maribor, Slovenia
E-mail: andreja.nekrep@um.si

Andreja Nekrep, MA, is Deputy Secretary General for Research, International Projects and Development at University of Maribor. She received her BA and MA degrees at the Faculty of Economics and Business, University of Maribor. Before her current position, she was Head of Science Institute and Deputy Secretary General of Faculty of Education, University of Maribor. Her bibliography consists of 71 units covering regional economics and education.

Sebastjan Strašek

University of Maribor, Faculty of Economics and Business, Slovenia
E.mail: sebastjan.strasek@um.si

Sebastjan Strašek, PhD, is full professor of economic policy at the Faculty of Economics and Business, University of Maribor. He received his B.A. in economics from the University of Zagreb, Croatia, and his Ph.D. in economics from the University of Maribor. He has written widely on various aspects of financial crises, including business cycles, behaviour of capital markets, and different aspects of stock trends.

Darja Boršič

University of Maribor, Faculty of Economics and Business, Slovenia
E-mail: darja.borsic@um.si

Darja Boršič, PhD, is Associate Professor in two fields: applied economics and econometrics, and economic theory and political economy at the Faculty of Economics and Business, University of Maribor. She is head of Institute for Economic Diagnosis and Prognosis and an active researcher within research program entitled »Adjustment of the Slovenian economy and development identity of Slovenia in EU«. Her research is focused on price levels, exchange rates and the labour market.

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