Relationship Between Innovation and Economic Growth: A Study on EU Countries

Thesis title: Relationship Between Innovation and Economic Growth: A Study on EU Countries
Author: Gumbeze, Wish
Thesis type: Diploma thesis
Supervisor: Brůna, Karel
Opponents: Šímová, Kateřina
Thesis language: English
Abstract:
This master's thesis delves into the intricate relationship between innovation and economic growth within the European Union (EU). It centers on examining the interplay among patents (PAT), Gross Domestic Product Growth (GDP), and scientific articles (SCIJ). Employing various statistical methods such as panel regression models, fixed and random effects models, the Hausman test, and the Generalized Method of Moments (GMM), the empirical analysis extends from 2003 to 2020. Organized into three chapters, the study begins with a theoretical evaluation of innovation and economic growth, progressing to scrutinize the innovation system in EU countries. The third chapter unveils empirical research findings gleaned from data originating from 24 EU countries, illuminating the intricate dynamics between innovation and economic growth. Summary statistics offer insights into the distribution and characteristics of variables, highlighting variability and dependencies across different cross-sectional units. The correlation matrix uncovers the strength and direction of relationships among variables, emphasizing both positive and negative associations. The cross-sectional dependence (CD) test accentuates the interconnectedness among countries by rejecting the null hypothesis of independence for all variables. Significant insights into the relationship between GDP growth and independent variables are provided by Pooled OLS regression analysis and Random-Effects (GLS) model results, showcasing both positive and negative associations. Although the Generalized Method of Moments (GMM) models delve deeper into these relationships, concerns arise over the reliability of estimates due to an undefined standard error. The findings underscore the significance of balanced innovation policies and coordinated international efforts in fostering sustainable economic development.
Keywords: Economic growth; Innovation; European Union
Thesis title: Relationship Between Innovation and Economic Growth: A Study on EU Countries
Author: Gumbeze, Wish
Thesis type: Diplomová práce
Supervisor: Brůna, Karel
Opponents: Šímová, Kateřina
Thesis language: English
Abstract:
This master's thesis delves into the intricate relationship between innovation and economic growth within the European Union (EU). It centers on examining the interplay among patents (PAT), Gross Domestic Product Growth (GDP), and scientific articles (SCIJ). Employing various statistical methods such as panel regression models, fixed and random effects models, the Hausman test, and the Generalized Method of Moments (GMM), the empirical analysis extends from 2003 to 2020. Organized into three chapters, the study begins with a theoretical evaluation of innovation and economic growth, progressing to scrutinize the innovation system in EU countries. The third chapter unveils empirical research findings gleaned from data originating from 24 EU countries, illuminating the intricate dynamics between innovation and economic growth. Summary statistics offer insights into the distribution and characteristics of variables, highlighting variability and dependencies across different cross-sectional units. The correlation matrix uncovers the strength and direction of relationships among variables, emphasizing both positive and negative associations. The cross-sectional dependence (CD) test accentuates the interconnectedness among countries by rejecting the null hypothesis of independence for all variables. Significant insights into the relationship between GDP growth and independent variables are provided by Pooled OLS regression analysis and Random-Effects (GLS) model results, showcasing both positive and negative associations. Although the Generalized Method of Moments (GMM) models delve deeper into these relationships, concerns arise over the reliability of estimates due to an undefined standard error. The findings underscore the significance of balanced innovation policies and coordinated international efforts in fostering sustainable economic development.
Keywords: Innovation; European Union; Economic growth

Information about study

Study programme: Finance and Accounting
Type of study programme: Magisterský studijní program
Assigned degree: Ing.
Institutions assigning academic degree: Vysoká škola ekonomická v Praze
Faculty: Faculty of Finance and Accounting
Department: Department of Monetary Theory and Policy

Information on submission and defense

Date of assignment: 15. 7. 2023
Date of submission: 11. 3. 2024
Date of defense: 12. 6. 2024
Identifier in the InSIS system: https://insis.vse.cz/zp/85062/podrobnosti

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