Is increasing a share of R&D expenditure in GDP a factor in strengthening the level of innovation development in Ukraine compared with GII’s top countries?
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Received October 29, 2023;Accepted December 20, 2023;Published December 27, 2023
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Author(s)Link to ORCID Index: https://orcid.org/0000-0002-4159-8446Link to ORCID Index: https://orcid.org/0000-0003-1976-4775Link to ORCID Index: https://orcid.org/0000-0001-6445-806XLink to ORCID Index: https://orcid.org/0000-0002-8500-0362Link to ORCID Index: https://orcid.org/0000-0002-3156-6790
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DOIhttp://dx.doi.org/10.21511/ppm.21(4).2023.53
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Article InfoVolume 21 2023, Issue #4, pp. 713-723
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Cited by1 articlesJournal title: Green, Blue and Digital Economy JournalArticle title: SELECTION AND IMPLEMENTATION ALTERNATIVES FOR THE MARKETING STRATEGY OF ENTERPRISE MANAGEMENTDOI: 10.30525/2661-5169/2024-1-1Volume: 1 / Issue: 1 / First page: 1 / Year: 2024Contributors: Mariia Bahorka, Tetiana Ustik, Liudmila Kvasova
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The study aims to test whether increasing a share of R&D expenditure in GDP strengthens the level of innovation development in Ukraine compared with top countries in the Global Innovation Index. It models the impact of changing a share of R&D expenditure in GDP on the level of innovation development based on 10 countries-leaders in GII 2022 and Ukraine. Correlation analysis proved the existence of a relationship between the levels of R&D expenditure (as percent of GDP) and innovation development (the overall score of GII); its strength and direction are characterized (for 2011–2020). The results show that in GII’s top countries, the relationship between innovation development and R&D expenditure is direct in 70% of the sample’s countries, mostly with high and very high relationship power without time lag or 1-2-year time lag. This relationship is inverse in Ukraine, with high relationship power and a 1-year time lag. The system dynamic linear panel-data model is built to determine and formalize the impact of changing a share of R&D expenditure in GDP on the level of innovation development for GII’s top countries and the linear regression model – for Ukraine. For GII’s top countries, it is confirmed that with an increase in R&D expenditures by 1%, innovation development potentially increases by an average of 2.71%, and in Ukraine – it decreases by an average of 4.8%. This discrepancy is explained by the need to improve state policy and regulatory framework in innovation development and its financing in Ukraine.
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JEL Classification (Paper profile tab)H72, O32
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References54
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Tables4
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Figures0
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- Table 1. Checking the normal distribution of the data for R&D expenditure based on the Shapiro-Wilk test
- Table 2. Confirmation of the relationship between the level of innovation development and R&D expenditure based on Pearson and Spearman correlation analysis
- Table 3. The results of the system dynamic linear panel-data model to formalize the influence of the factor of R&D expenditures on the level of innovation development in GII’s top countries
- Table 4. The results of the linear regression model to formalize the influence of R&D expenditures on the level of innovation development in Ukraine
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Conceptualization
Olena Dobrovolska, Ralph Sonntag
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Data curation
Olena Dobrovolska, Mariia Bahorka , Nataliiа Yurchenko
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Formal Analysis
Olena Dobrovolska, Ralph Sonntag, Yuliia Masiuk, Mariia Bahorka
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Funding acquisition
Olena Dobrovolska
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Investigation
Olena Dobrovolska, Nataliiа Yurchenko
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Methodology
Olena Dobrovolska, Yuliia Masiuk
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Project administration
Olena Dobrovolska, Ralph Sonntag, Yuliia Masiuk
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Resources
Olena Dobrovolska
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Software
Olena Dobrovolska
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Supervision
Olena Dobrovolska, Mariia Bahorka
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Validation
Olena Dobrovolska, Nataliiа Yurchenko
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Visualization
Olena Dobrovolska, Yuliia Masiuk, Mariia Bahorka , Nataliiа Yurchenko
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Writing – original draft
Olena Dobrovolska, Ralph Sonntag, Yuliia Masiuk, Mariia Bahorka , Nataliiа Yurchenko
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Writing – review & editing
Olena Dobrovolska, Ralph Sonntag, Yuliia Masiuk, Mariia Bahorka , Nataliiа Yurchenko
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Conceptualization
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