KNOWLEDGE-INTENSIVE EMPLOYMENT AS A DRIVER OF INNOVATION SYSTEM ENGAGEMENT: EVIDENCE FROM EUROPEAN COUNTRIES
Abstract
This study investigates the relationship between knowledge-intensive employment and national innovation performance across European countries between 2015 and 2024. Utilizing harmonized Eurostat data and multivariate regression analysis, the research operationalizes innovation via European Patent Office (EPO) patent applications. Two core indicators—employment volume in knowledge-intensive activities (KIA) and its share in national labor markets—are examined. Results indicate a strong and statistically significant relationship between both employment scale and intensity and innovation output. Specifically, for every 1,000 additional knowledge-intensive employees, there is an associated increase of nearly one patent application. Furthermore, a 1% increase in the employment share of KIA workers corresponds to a rise of over 187 patent applications. These findings validate the systemic role of human capital within the National Innovation Systems (NIS) framework, where the integration of skilled labor enhances a country’s absorptive capacity and innovation efficiency. With an R² value of 0.953 and a Durbin-Watson statistic of 2.23, the regression model demonstrates robustness and reliability. From a policy standpoint, this evidence suggests that strategic labor force development—beyond R&D funding—is vital for strengthening innovation ecosystems. The study contributes to the literature by distinguishing between employment quantity and employment intensity, highlighting their independent effects on innovation outcomes. The results are particularly relevant for the EU’s Smart Specialisation Strategies, the European Green Deal, and Digital Transition initiatives.
Keywords
References
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Details
Primary Language
English
Subjects
European Union Economy, International Economic Foundation, International Corporation, Business Administration, Business Systems in Context (Other)
Journal Section
Research Article
Authors
Kağan Okatan
*
0000-0002-0517-665X
Türkiye
Publication Date
March 17, 2026
Submission Date
June 30, 2025
Acceptance Date
October 14, 2025
Published in Issue
Year 2026 Volume: 27 Number: 1