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?
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 innova...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2023-12-01
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| Series: | Problems and Perspectives in Management |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19412/PPM_2023_04_Dobrovolska.pdf |
| _version_ | 1797327962441252864 |
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| author | Olena Dobrovolska Ralph Sonntag Yuliia Masiuk Mariia Bahorka Nataliiа Yurchenko |
| author_facet | Olena Dobrovolska Ralph Sonntag Yuliia Masiuk Mariia Bahorka Nataliiа Yurchenko |
| author_sort | Olena Dobrovolska |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-08T06:44:23Z |
| format | Article |
| id | doaj.art-7d862db27998440b96c9cc51c56af38d |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-03-08T06:44:23Z |
| publishDate | 2023-12-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-7d862db27998440b96c9cc51c56af38d2024-02-03T08:14:43ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672023-12-0121471372310.21511/ppm.21(4).2023.5319412Is 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?Olena Dobrovolska0https://orcid.org/0000-0002-4159-8446Ralph Sonntag1https://orcid.org/0000-0003-1976-4775Yuliia Masiuk2https://orcid.org/0000-0001-6445-806XMariia Bahorka 3https://orcid.org/0000-0002-8500-0362Nataliiа Yurchenko4https://orcid.org/0000-0002-3156-6790Doctor of Economic Sciences, Professor, Department of Finance, Banking and Insurance, Dnipro State Agrarian and Economic University, Ukraine. Doctor of Economic Sciences, Professor, Visiting Professor, University of Applied Sciences Dresden, Germany.Professor, Dr., Rector of the University of Applied Sciences Stralsund, GermanyPh.D. (Economy), Professor, Department of Finance, Banking and Insurance, Dnipro State Agrarian and Economic University, UkraineDoctor of Economics, Professor, Head of Marketing Department, Dnipro State Agrarian and Economic UniversityPh.D. (Economy), Associate Professor, Department of Marketing, Dnipro State Agrarian and Economic University, UkraineThe 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.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19412/PPM_2023_04_Dobrovolska.pdfcostsdevelopmentexpenditurefinancingGDPinnovation |
| spellingShingle | Olena Dobrovolska Ralph Sonntag Yuliia Masiuk Mariia Bahorka Nataliiа Yurchenko 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? Problems and Perspectives in Management costs development expenditure financing GDP innovation |
| title | 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? |
| title_full | 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? |
| title_fullStr | 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? |
| title_full_unstemmed | 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? |
| title_short | 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? |
| title_sort | 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 |
| topic | costs development expenditure financing GDP innovation |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19412/PPM_2023_04_Dobrovolska.pdf |
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