Contribution of R&D services to added economic value in Estonia

Aaro Hazak () and Raul Ruubel ()
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Aaro Hazak: Tallinn University of Technology
Raul Ruubel: Tallinn University of Technology

No 301516, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: The role and intensity of knowledge within an economy remains a key success factor for long-term economic growth, increased productivity, competitiveness and socio-economic sustainability. These challenges are particularly important for emerging economies that are yet to catch up frontier knowledge economies. This paper seeks to understand the contribution that R&D services have through added economic value to the GDP in Estonia. Based on the most recent supply and use matrices on the data from year 2009, prepared under the input-output framework of Estonian national accounts, we identify to which extent do the R&D services used in the Estonian economy originate from domestic industries and imports, and how the supplies of R&D services are allocated between intermediate and final uses, including exports. As an output of that analysis we identify the direct contribution of R&D services to added economic value in the Estonian economy to be 0.5% and their primary indirect contribution to be 0.4%. Further indirect effects however exist which need to be quantified under our following studies. Vast majority (93%) of the R&D services used in the Estonian economy appear to be of local origin, generated primarily by companies specialising in R&D services. Export capacity of Estonian R&D services appears to be very limited, contributing 0.2% of Estonian total exports. Overall, we identify that a significant progress is yet to be made to catch up with knowledge frontier countries.

Keywords: R&D services; GDP; supply and use tables; input-output modelling (search for similar items in EconPapers)
JEL-codes: C67 L80 (search for similar items in EconPapers)
Pages: 1 page
Date: 2014-07
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ind, nep-sbm and nep-tra
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Published in Proceedings of the Proceedings of the 11th International Academic Conference, Reykjavik, Jul 2014, pages 129-129

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:0301516

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