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Innovation, Global Competitiveness and Human Development Index: EU Cluster Case

Year 2024, Volume: 11 Issue: 2, 559 - 574, 31.10.2024
https://doi.org/10.17336/igusbd.1318161

Abstract

This study investigates the effects of innovation on global competitiveness within the framework of the EU13 and EU15 countries. Using a Pooled Driscoll and Kraay regression analysis that takes into account unit and time effects, the research illuminates the relationship between the Human Development Index (HDI), which represents Global Competitiveness, Research Expenditure, the Number of Researchers, the Number of Patents, and the Human Capital Index. The findings reveal that while the number of researchers and research expenditure lack a statistically significant effect on HDI in both groups, a significant positive correlation was found between HDI and both the number of patents and human capital. More specifically, for EU13 countries, an increase in the number of patents and human capital leads to respective increases of 0.005 and 0.04 in the HDI, while for EU15 countries, these figures stand at 0.0008 and 0.03 respectively. The study concludes that investment strategies aimed at enhancing human capital and increasing the number of patent applications can notably improve global competitiveness. For EU13 countries, in particular, greater effort in the mentioned areas is needed to narrow the gap with their EU15 counterparts. In addition, despite the indirect impact on competitiveness, it is recommended for EU13 countries to boost their R&D investments and foster technological transfer to enhance their innovation capabilities. The findings from this study underscore the pivotal role of innovation in achieving global competitiveness and suggest a need for stronger collaboration within the European Union, particularly in scientific and technological fields, to facilitate knowledge and skill exchange.

References

  • AGHION, P. & HOWITT, P. (1992). A Model of Growth Through Creative Destruction Econometrica, 60(2), 323–351. https://doi.org/10.2307/2951599.
  • AIGINGER, K. (2006). Competitiveness: From a Dangerous Obsession to a WelfareCreating Ability with Positive Externalities. J Ind Compet Trade, 6, 161–177. https://doi.org/10.1007/s10842-006-9475-6.
  • AIGINGER, K. & VOGEL, J. (2015). Competitiveness: from a misleading concept to a strategy supporting Beyond GDP goals. Competitiveness Review, 25(5), 497-523. https://doi.org/10.1108/CR-06-2015-0052.
  • AIGINGER, K., BÄRENTHALER-SIEBER, S. & VOGEL, J. (2013). Competitiveness under New Perspectives. WIFO, Work Package 301, MS46, Working Paper No 44.
  • ALEXA, D., CISMAS, L. M., RUS, A. V. & POP SILAGHI, M. I. (2019). Economic Growth, Competitiveness and Convergence in The European Regions. A Spatial Model Estimation. Economic Computation & Economic Cybernetics Studies & Research, 53(1), 107-124. https://doi.org/10.24818/18423264/53.1.19.07.
  • ARCHIBUGI, D. & FILIPPETTI, A. (2011). Is the Economic Crisis Impairing Convergence in Innovation Performance across Europe? JCMS, 49(6),1153–1182. https://doi.org/10.1111/j.1468-5965.2011.02191.x.
  • BARRIOS, C., FLORES, E. & MARTÍNEZ, M. A. (2019). Club convergence in innovation activity across European regions. Papers in Regional Science, 98(4), 1545-1565. https://doi.org/10.1111/pirs.12429.
  • BARRO, R. (1990). Government Spending in a Simple Model of Endogenous Growth. Journal of Political Economy, 98, 103-125. https://doi.org/10.1086/261726.
  • MOON, C. H., RUGMAN, A. M. & VERBEKE, A. (1998). A generalized double diamond approach to the global competitiveness of Korea and Singapore. International Business Review, 7(2), 135–150. https://doi.org/10.1016/s0969-5931(98)00002-x.
  • CASSIERS, I. (2007). Beyond GDP, Measuring progress, true wealth, and the well-being of nations: Conference Proceedings. Beyond GDP, International Conference (Bruxelles, du 19/11/2007 au 20/11/2007).
  • CHARLES J. I. & KLENOW P. J. (2016). Beyond GDP? Welfare across Countries and Time. American Economic Review, 106 (9): 2426-57 https://doi.org/10.1257/aer.20110236.
  • CHO, D. S. (1998). From national Competitiveness to Bloc and Global Competitiveness. Competitiveness Review: An International Business Journal incorporating Journal of Global Competitiveness, 8, 11-23. https://doi.org/10.1108/eb046358.
  • DAVIES, A. & QUINLIVAN, G. (2006). A panel data analysis of the impact of trade on human development. The Journal of Socio-Economics, 35, 868–876. https://doi.org/10.1016/j.socec.2005.11.048.
  • DISTANONT, A. & KHONGMALAI, O. (2020). The role of innovation in creating a competitive advantage. College of Innovation. Thailand Kasetsart Journal of Social Sciences, 41,15–21. https://doi.org/10.1016/j.kjss.2018.07.009.
  • DOSI, G. & NELSON, R. R. (2018). Technological Advance as an Evolutionary Process. Modern Evolutionary Economics, 35–84 https://doi.org/10.1017/9781108661928.002.
  • DUNNING, J.H. (1992). Multinational enterprises and the global economy. Wokingham, England Reading, Mass: Addison-Wesley.
  • ERKEKOǦLU, H. & ARIÇ K. H. (2013). Competitiveness strength research in Turkey and EU Countries according to porter's diamond model: Panel data analysis (2007-2010). Actual Problems of Economics, 141(3), 255 – 266.
  • EUROPEAN COMMISSION (2001). Competitiveness of European Manufacturing. DG Enterprise, Brussels.
  • EUROPEAN COMMISSION (2007). Beyond GDP, Measuring progress, true wealth, and the well-being of nations. DG Enterprise, Brussels.
  • FODDI, M. & USAI S.(2013). Regional Knowledge Performance in Europe. Growth and Change, 44(2), 258–286. https://doi.org/10.1111/grow.12007.
  • FONSECA, L. M. & LIMA V. M. (2015). Countries three Wise Men: Sustainability, Innovation, and Competitiveness. Journal of Industrial Engineering and Management JIEM, 8(4): 1288-1302 – Online ISSN: 2013-0953 – Print ISSN: 2013-8423 http://dx.doi.org/10.3926/jiem.
  • ULENGIN F., KABAK, O., ONSEL, S., AKTAS E., & PARKER B. R. (2011). The competitiveness of nations and implications for human development. Socio-Economic Planning Sciences, 45(1), 16-27. https://doi.org/10.1016/j.seps.2010.10.001.
  • GERA, I. & SINGH, S.(2019). A Critique of Economic Literature on Technology and Fourth Industrial Revolution: Employment and the Nature of Jobs. The Indian Journal of Labour Economics, 62, 715–729. https://doi.org/10.1007/s41027-019-00191-8.
  • GRANADOS, C. & SANZ, I. (2008). The Dispersion of Technology and Income in Europe: Evolution and Mutual Relationship Across Regions. Research Policy, 37, 836–848. https://doi.org/10.1016/j.respol.2008.03.002.
  • IMD (2017). Methodology and Principles of Analysis.
  • JAWAID, S.T. & WAHEED, A. (2017). Contribution of International Trade in Human Development of Pakistan. Global Business Review, 18(5), 1–23. https://doi.org/10.1177/0972150917710345.
  • JONES C. I. & KLENOW P. J. (2016). Beyond GDP? Welfare across Countries and Tiime. American Economic Review, 106(9), 2426–2457 http://dx.doi.org/10.1257/aer.201102362426.
  • KETELS, C. H. M. (2006). Michael Porter’s Competitiveness Framework—Recent Learnings and New Research Priorities. Journal of Industry, Competition and Trade, 6(2), 115–136. https://doi.org/10.1007/s10842-006-9474-7.
  • KIRANKABEŞ, M. C. (2006). Küresel rekabet gücü boyutunda ab ülkeleri ile türkiye'nin karşilaştirmali analizi . Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, (16).
  • LA Van, H.& MURPHY P. J.(2007). Southeast Asian Culture, Human Development, and Business Competitiveness. Journal of Asia Business Studies, FALL. https://doi.org/10.1108/15587890780001279.
  • LUCAS, R. E. (1988). On the Mechanics of Economic Development. Journal of Monetary Economics, 21, 3-42. https://doi.org/10.1016/0304-3932(88)90168-7.
  • MADSEN, J. & STRULIK, H. (2020). Technological change and inequality in the very long run. European Economic Review, Elsevier, 129(C). https://doi.org/10.1016/j.euroecorev.2020.103532.
  • NELSON, R. R., DOSI, G., HELFAT, C. E., PYKA, A., SAVIOTTI, P. P., LEE, K., DOPFER K., MALERBA, F. & WINTER S. G. (2018). Modern evolutionary economics: An overview. https://doi.org/10.1017/9781108661928.
  • GALOR O. (2011). Inequality, Human Capital Formation and the Process of Development. Working Papers 2011-7, Brown University, Department of Economics. https://EconPapers.repec.org/RePEc:bro:econwp:2011-7.
  • ONSEL, S., ULENGIN, F., ULUSOY, G., AKTAS, E., KABAK, O. & TOPCU, Y. I. (2008). A new perspective on the competitiveness of nations. Socio-Economic Planning Sciences, 42(4), 221–246. https://doi.org/10.1016/j.seps.2007.11.001.
  • PORTER, M. E. (1990). The Competitive Advantage of Nations. Free Press, New York.
  • REYES, G.E. & USECHE, A.J. (2019). Competitiveness, Economic Growth and Human Development in Latin American and Caribbean countries 2006-2015: A Performance and Correlation Analysis. Competitiveness Review, 29(2), 139-159. https://doi.org/10.1108/CR-11-2017-0085.
  • RICARDO, D. (2010). On the principles of political economy, and taxation. Project Gutenberg.
  • SOLOW R. M. (1956). A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics, 70(1), 65–94. https://doi.org/10.2307/1884513.
  • ROMER, P. M. (1986). Increasing Returns and Long-Run Growth. Journal of Political Economy, 94(5), 1002–1037. http://www.jstor.org/stable/1833190.
  • RUGMAN, A.M. & D’CRUZ, J.R. (1993). The Double Diamond Model of International Competitiveness: The Canadian Experience. Management International Review, 33, 17-39.
  • SCHUMPETER, J.A. (1934). The Theory of Economic Development. Harvard University Press, Cambridge. SMITH A. (2007). The Wealth of Nations. Originally published in 1776. This edition published by Harriman House, 2007.
  • TELLERIA, J. (2021). Defning and Measuring Human Development: A Genealogical Analysis of the UNDP’s Human Development Reports. The European Journal of Development Research. https://doi.org/10.1057/s41287-022-00516-2.
  • TERZIC, L. (2017). The Role of Innovation in Fostering Competitiveness and Economic Growth: Evidence from Developing economies. Comparative Economic Research, 20 (4). https://doi.org/10.1515/cer-2017-0028.
  • WEF (2008). World Economic Forum. Competitiveness Report 2008–2009.
  • WEF (2018). World Economic Forum. Competitiveness Report 2017–2018.
  • WERKER, C. & ATHREYE, S. (2004). Marshall’s disciples: knowledge and innovation driving regional economic development and growth. Journal of Evolutionary Economics, 14(5), 505-523. https://doi.org/10.1007/s00191-004-0237-5.

İnovasyon, Küresel Rekabet Edebilirlik ve İnsani Gelişme Endeksi: AB Küme Örneği

Year 2024, Volume: 11 Issue: 2, 559 - 574, 31.10.2024
https://doi.org/10.17336/igusbd.1318161

Abstract

Bu çalışma, EU13 ve EU15 ülkeleri çerçevesinde inovasyonun küresel rekabet üzerindeki etkilerini araştırmaktadır. Birim ve zaman etkilerini dikkate alarak Pooled Driscoll ve Kraay regresyon analizi kullanan araştırma Küresel Rekabet Gücünü temsil eden İnsan Gelişim İndeksi (HDI), Araştırma Harcamaları, Araştırmacı Sayısı, Patent Sayısı ve İnsan Sermayesi İndeksi arasındaki ilişkiyi aydınlatmaktadır. Bulgular, araştırmacı sayısı ve araştırma harcamalarının her iki grupta da HDI üzerinde istatistiksel olarak anlamlı bir etkisi olmadığını, ancak patent sayısı ve insan sermayesi ile HDI arasında anlamlı bir pozitif korelasyon olduğunu göstermiştir. Daha spesifik olarak, EU13 ülkeleri için, patent sayısındaki ve insan sermayesindeki bir artış, HDI'de sırasıyla 0.005 ve 0.04'lük bir artışa yol açarken, EU15 ülkeleri için bu rakamlar sırasıyla 0.0008 ve 0.03'tür. Çalışma, insan sermayesini artırmaya ve patent başvuru sayısını çoğaltmaya yönelik yatırım stratejilerinin küresel rekabeti önemli ölçüde iyileştirebileceği sonucuna ulaşmaktadır. Özellikle EU13 ülkeleri için, bahsedilen alanlarda daha fazla çaba sarf edilmesi, EU15 muadilleriyle aradaki farkı daraltma ihtiyacını ortaya koymaktadır. Ayrıca, rekabet üzerindeki dolaylı etkisine rağmen, EU13 ülkelerinin Ar-Ge yatırımlarını artırmaları ve inovasyon yeteneklerini artırmak için teknolojik transferi teşvik etmeleri önerilmektedir. Bu çalışmanın bulguları, küresel rekabeti elde etmede inovasyonun hayati rolünü vurgulamakta ve bilgi ve beceri alışverişini kolaylaştırmak için Avrupa Birliği içinde, özellikle bilimsel ve teknolojik alanlarda, daha güçlü bir işbirliği ihtiyacını öne çıkarmaktadır.

References

  • AGHION, P. & HOWITT, P. (1992). A Model of Growth Through Creative Destruction Econometrica, 60(2), 323–351. https://doi.org/10.2307/2951599.
  • AIGINGER, K. (2006). Competitiveness: From a Dangerous Obsession to a WelfareCreating Ability with Positive Externalities. J Ind Compet Trade, 6, 161–177. https://doi.org/10.1007/s10842-006-9475-6.
  • AIGINGER, K. & VOGEL, J. (2015). Competitiveness: from a misleading concept to a strategy supporting Beyond GDP goals. Competitiveness Review, 25(5), 497-523. https://doi.org/10.1108/CR-06-2015-0052.
  • AIGINGER, K., BÄRENTHALER-SIEBER, S. & VOGEL, J. (2013). Competitiveness under New Perspectives. WIFO, Work Package 301, MS46, Working Paper No 44.
  • ALEXA, D., CISMAS, L. M., RUS, A. V. & POP SILAGHI, M. I. (2019). Economic Growth, Competitiveness and Convergence in The European Regions. A Spatial Model Estimation. Economic Computation & Economic Cybernetics Studies & Research, 53(1), 107-124. https://doi.org/10.24818/18423264/53.1.19.07.
  • ARCHIBUGI, D. & FILIPPETTI, A. (2011). Is the Economic Crisis Impairing Convergence in Innovation Performance across Europe? JCMS, 49(6),1153–1182. https://doi.org/10.1111/j.1468-5965.2011.02191.x.
  • BARRIOS, C., FLORES, E. & MARTÍNEZ, M. A. (2019). Club convergence in innovation activity across European regions. Papers in Regional Science, 98(4), 1545-1565. https://doi.org/10.1111/pirs.12429.
  • BARRO, R. (1990). Government Spending in a Simple Model of Endogenous Growth. Journal of Political Economy, 98, 103-125. https://doi.org/10.1086/261726.
  • MOON, C. H., RUGMAN, A. M. & VERBEKE, A. (1998). A generalized double diamond approach to the global competitiveness of Korea and Singapore. International Business Review, 7(2), 135–150. https://doi.org/10.1016/s0969-5931(98)00002-x.
  • CASSIERS, I. (2007). Beyond GDP, Measuring progress, true wealth, and the well-being of nations: Conference Proceedings. Beyond GDP, International Conference (Bruxelles, du 19/11/2007 au 20/11/2007).
  • CHARLES J. I. & KLENOW P. J. (2016). Beyond GDP? Welfare across Countries and Time. American Economic Review, 106 (9): 2426-57 https://doi.org/10.1257/aer.20110236.
  • CHO, D. S. (1998). From national Competitiveness to Bloc and Global Competitiveness. Competitiveness Review: An International Business Journal incorporating Journal of Global Competitiveness, 8, 11-23. https://doi.org/10.1108/eb046358.
  • DAVIES, A. & QUINLIVAN, G. (2006). A panel data analysis of the impact of trade on human development. The Journal of Socio-Economics, 35, 868–876. https://doi.org/10.1016/j.socec.2005.11.048.
  • DISTANONT, A. & KHONGMALAI, O. (2020). The role of innovation in creating a competitive advantage. College of Innovation. Thailand Kasetsart Journal of Social Sciences, 41,15–21. https://doi.org/10.1016/j.kjss.2018.07.009.
  • DOSI, G. & NELSON, R. R. (2018). Technological Advance as an Evolutionary Process. Modern Evolutionary Economics, 35–84 https://doi.org/10.1017/9781108661928.002.
  • DUNNING, J.H. (1992). Multinational enterprises and the global economy. Wokingham, England Reading, Mass: Addison-Wesley.
  • ERKEKOǦLU, H. & ARIÇ K. H. (2013). Competitiveness strength research in Turkey and EU Countries according to porter's diamond model: Panel data analysis (2007-2010). Actual Problems of Economics, 141(3), 255 – 266.
  • EUROPEAN COMMISSION (2001). Competitiveness of European Manufacturing. DG Enterprise, Brussels.
  • EUROPEAN COMMISSION (2007). Beyond GDP, Measuring progress, true wealth, and the well-being of nations. DG Enterprise, Brussels.
  • FODDI, M. & USAI S.(2013). Regional Knowledge Performance in Europe. Growth and Change, 44(2), 258–286. https://doi.org/10.1111/grow.12007.
  • FONSECA, L. M. & LIMA V. M. (2015). Countries three Wise Men: Sustainability, Innovation, and Competitiveness. Journal of Industrial Engineering and Management JIEM, 8(4): 1288-1302 – Online ISSN: 2013-0953 – Print ISSN: 2013-8423 http://dx.doi.org/10.3926/jiem.
  • ULENGIN F., KABAK, O., ONSEL, S., AKTAS E., & PARKER B. R. (2011). The competitiveness of nations and implications for human development. Socio-Economic Planning Sciences, 45(1), 16-27. https://doi.org/10.1016/j.seps.2010.10.001.
  • GERA, I. & SINGH, S.(2019). A Critique of Economic Literature on Technology and Fourth Industrial Revolution: Employment and the Nature of Jobs. The Indian Journal of Labour Economics, 62, 715–729. https://doi.org/10.1007/s41027-019-00191-8.
  • GRANADOS, C. & SANZ, I. (2008). The Dispersion of Technology and Income in Europe: Evolution and Mutual Relationship Across Regions. Research Policy, 37, 836–848. https://doi.org/10.1016/j.respol.2008.03.002.
  • IMD (2017). Methodology and Principles of Analysis.
  • JAWAID, S.T. & WAHEED, A. (2017). Contribution of International Trade in Human Development of Pakistan. Global Business Review, 18(5), 1–23. https://doi.org/10.1177/0972150917710345.
  • JONES C. I. & KLENOW P. J. (2016). Beyond GDP? Welfare across Countries and Tiime. American Economic Review, 106(9), 2426–2457 http://dx.doi.org/10.1257/aer.201102362426.
  • KETELS, C. H. M. (2006). Michael Porter’s Competitiveness Framework—Recent Learnings and New Research Priorities. Journal of Industry, Competition and Trade, 6(2), 115–136. https://doi.org/10.1007/s10842-006-9474-7.
  • KIRANKABEŞ, M. C. (2006). Küresel rekabet gücü boyutunda ab ülkeleri ile türkiye'nin karşilaştirmali analizi . Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, (16).
  • LA Van, H.& MURPHY P. J.(2007). Southeast Asian Culture, Human Development, and Business Competitiveness. Journal of Asia Business Studies, FALL. https://doi.org/10.1108/15587890780001279.
  • LUCAS, R. E. (1988). On the Mechanics of Economic Development. Journal of Monetary Economics, 21, 3-42. https://doi.org/10.1016/0304-3932(88)90168-7.
  • MADSEN, J. & STRULIK, H. (2020). Technological change and inequality in the very long run. European Economic Review, Elsevier, 129(C). https://doi.org/10.1016/j.euroecorev.2020.103532.
  • NELSON, R. R., DOSI, G., HELFAT, C. E., PYKA, A., SAVIOTTI, P. P., LEE, K., DOPFER K., MALERBA, F. & WINTER S. G. (2018). Modern evolutionary economics: An overview. https://doi.org/10.1017/9781108661928.
  • GALOR O. (2011). Inequality, Human Capital Formation and the Process of Development. Working Papers 2011-7, Brown University, Department of Economics. https://EconPapers.repec.org/RePEc:bro:econwp:2011-7.
  • ONSEL, S., ULENGIN, F., ULUSOY, G., AKTAS, E., KABAK, O. & TOPCU, Y. I. (2008). A new perspective on the competitiveness of nations. Socio-Economic Planning Sciences, 42(4), 221–246. https://doi.org/10.1016/j.seps.2007.11.001.
  • PORTER, M. E. (1990). The Competitive Advantage of Nations. Free Press, New York.
  • REYES, G.E. & USECHE, A.J. (2019). Competitiveness, Economic Growth and Human Development in Latin American and Caribbean countries 2006-2015: A Performance and Correlation Analysis. Competitiveness Review, 29(2), 139-159. https://doi.org/10.1108/CR-11-2017-0085.
  • RICARDO, D. (2010). On the principles of political economy, and taxation. Project Gutenberg.
  • SOLOW R. M. (1956). A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics, 70(1), 65–94. https://doi.org/10.2307/1884513.
  • ROMER, P. M. (1986). Increasing Returns and Long-Run Growth. Journal of Political Economy, 94(5), 1002–1037. http://www.jstor.org/stable/1833190.
  • RUGMAN, A.M. & D’CRUZ, J.R. (1993). The Double Diamond Model of International Competitiveness: The Canadian Experience. Management International Review, 33, 17-39.
  • SCHUMPETER, J.A. (1934). The Theory of Economic Development. Harvard University Press, Cambridge. SMITH A. (2007). The Wealth of Nations. Originally published in 1776. This edition published by Harriman House, 2007.
  • TELLERIA, J. (2021). Defning and Measuring Human Development: A Genealogical Analysis of the UNDP’s Human Development Reports. The European Journal of Development Research. https://doi.org/10.1057/s41287-022-00516-2.
  • TERZIC, L. (2017). The Role of Innovation in Fostering Competitiveness and Economic Growth: Evidence from Developing economies. Comparative Economic Research, 20 (4). https://doi.org/10.1515/cer-2017-0028.
  • WEF (2008). World Economic Forum. Competitiveness Report 2008–2009.
  • WEF (2018). World Economic Forum. Competitiveness Report 2017–2018.
  • WERKER, C. & ATHREYE, S. (2004). Marshall’s disciples: knowledge and innovation driving regional economic development and growth. Journal of Evolutionary Economics, 14(5), 505-523. https://doi.org/10.1007/s00191-004-0237-5.
There are 47 citations in total.

Details

Primary Language English
Subjects Development Economics - Macro
Journal Section Articles
Authors

Melike Çetin

Early Pub Date October 31, 2024
Publication Date October 31, 2024
Acceptance Date July 26, 2023
Published in Issue Year 2024 Volume: 11 Issue: 2

Cite

APA Çetin, M. (2024). Innovation, Global Competitiveness and Human Development Index: EU Cluster Case. İstanbul Gelişim Üniversitesi Sosyal Bilimler Dergisi, 11(2), 559-574. https://doi.org/10.17336/igusbd.1318161

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