Evaluation of Innovations as a Labour Productivity Increasing Factor: The Case of the European Union Countries

Maciulyte-Sniukiene, Alma; Montvilaite, Kristina
December 2012
Socialiniai Tyrimai;2012, Vol. 2012 Issue 4, p45
Academic Journal
The paper reveals the concept of innovations and briefly discusses the development of models of the innovation process. To evaluate the impact of innovation development on labour productivity retrospective research of the correlations of innovations and labour productivity was carried out. This enabled to generate the evaluation scheme of innovations as the factor that increases labour productivity. The research was performed using data of EU-27 of 2001-2010. After ranking the EU states according to labour productivity, summarised the innovative index and R&D expenditures it was established that the states of high labour productivity demonstrate bigger gaps in ranking; therefore, in the first research stage it was assumed that correlation between innovation development and labour productivity is stronger in the countries of lower labour productivity. Proceeding analysis this assumption was checked by indicating correlation between the key indicator that reflects innovation development (R&D) and labour productivity using the correlation-regressive analysis. Its results show that innovation development is not the factor that predetermines labour productivity in the countries of high labour productivity; however, the impact of innovations on labour productivity in medium and low productivity countries is direct and significant, with few exceptional cases. The conclusion here might be that innovations are resources for labour productivity increase in medium and low productivity countries.


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