CONNECTING INNOVATION AND ECONOMIC PROSPERITY: THE IMPACT OF R&D EXPENDITURES ON ECONOMIC GROWTH

Adela Simona Vlăsceanu and Lavinia Florența Puiu
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Adela Simona Vlăsceanu: Doctoral School of Economic Sciences, School of Advanced Studies of the Romanian Academy, Bucharest, Romania.
Lavinia Florența Puiu: Doctoral School of Economic Sciences, School of Advanced Studies of the Romanian Academy, Bucharest, Romania.

Studii Financiare (Financial Studies), 2025, vol. 29, issue 1, 41-51

Abstract: The role of research and development (R&D) as a main foundation of innovation, productivity improvement, and a key element for national competitive advantage in the global economy is well established. This study aims to examine the relationship between R&D investment and economic growth through empirical analysis using panel regression techniques. Our results reveal that human capital specialised in science and technology significantly contributes to economic growth. Overall, innovation and a well-educated workforce are helpful in achieving sustainable development. Our model provides a statistically valid framework for analysing economic growth, enabling the formulation of sound policy recommendations while accounting for potential biases commonly found in panel data analysis.

Keywords: government R&D spending; human capital; empirical analysis (search for similar items in EconPapers)
JEL-codes: E24 O30 O47 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vls:finstu:v:29:y:2025:i:1:p:41-51

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