Does innovation promote economic growth? Evidence from European countries

Rana P. Maradana (), Rudra P. Pradhan, Saurav Dash (), Kunal Gaurav (), Manju Jayakumar () and Debaleena Chatterjee ()
Additional contact information
Rana P. Maradana: Indian Institute of Technology
Rudra P. Pradhan: Indian Institute of Technology
Saurav Dash: Indian Institute of Technology
Kunal Gaurav: Indian Institute of Technology
Manju Jayakumar: Indian Institute of Technology
Debaleena Chatterjee: Indian Institute of Technology

Journal of Innovation and Entrepreneurship, 2017, vol. 6, issue 1, 1-23

Abstract: Abstract The paper examines the long-run relationship between innovation and per capita economic growth in the 19 European countries over the period 1989–2014. This study uses six different indicators of innovation: patents-residents, patents-non-residents, research and development expenditure, researchers in research and development activities, high-technology exports, and scientific and technical journal articles to examine this long-run relationship with per capita economic growth. Using cointegration technique, the study finds evidence of long-run relationship between innovation and per capita economic growth in most of the cases, typically with reference to the use of a particular innovation indicator. Using Granger causality test, the study finds the presence of both unidirectional and bidirectional causality between innovation and per capita economic growth. These results vary from country to country, depending upon the types of innovation indicators that we use in the empirical investigation process. Most importantly, the study finds that all these innovation indicators are considerably linked with per capita economic growth. This particular linkage is either supply-leading or demand-following in some occasions, while it is the occurrence of both in some other occasions. The policy implication of this study is that countries should recognize the differences in innovation and per capita economic growth in order to maintain sustainable development in these countries.

Keywords: Innovation; Per capita economic growth; Cointegration; Granger causality; European countries (search for similar items in EconPapers)
JEL-codes: E44 O16 O43 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (58)

Downloads: (external link)
http://link.springer.com/10.1186/s13731-016-0061-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joiaen:v:6:y:2017:i:1:d:10.1186_s13731-016-0061-9

Ordering information: This journal article can be ordered from
https://innovation-e ... ip.springeropen.com/

DOI: 10.1186/s13731-016-0061-9

Access Statistics for this article

Journal of Innovation and Entrepreneurship is currently edited by Elias G. Carayannis

More articles in Journal of Innovation and Entrepreneurship from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().