CLUSTER ANALYSIS OF RESEARCH AND DEVELOPMENT CAPACITY IN EUROPE
Keywords:
research and development, higher education, innovation capacity, economic growth, cluster
Abstract
The role of innovation in economic development cannot be overstated, particularly in the context of emerging market economies and newly industrialized countries, where it serves as a catalyst for national growth and international competitiveness Human capital plays an indispensable role in the development of knowledge economies, and its importance has become increasingly pronounced within the European Union as the region seeks to maintain its competitiveness in the context of green and digital transitions. Cluster analysis offers a methodologically robust approach to grouping countries based on similarities in their R&D profiles. By identifying clusters with comparable R&D characteristics, it is possible to gain nuanced insights into the strengths and weaknesses of national innovation systems. Understanding the distribution of R&D capacity across Europe can facilitate international collaborations and promote knowledge sharing among countries with similar strengths and challenges. This research paper aims to explore the clustering of European countries based on their R&D capacity, providing a comprehensive analysis of key metrics and their implications for national innovation strategies. The analysis was made regarding the most important aspects of distinction between four identified clusters that in total 35 European countries have been grouped to
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2. Acemoglu, D., & Autor, D. (2012). What Does Human Capital Do? A Review of Goldin and Katz's The Race between Education and Technology. Journal of Economic Literature, 50 (2): 426–63. https://doi.org/10.1257/jel.50.2.426
3. Arroyabe, M. F., Arranz, C. F., De Arroyabe, I. F., & De Arroyabe, J. C. F. (2024). Analyzing AI adoption in European SMEs: A study of digital capabilities, innovation, and external environment. Technology in Society, 79, 102733. https://doi.org/10.1016/j.techsoc.2024.102733
4. Balsalobre-Lorente, D., Zeraibi, A., Shehzad, K., & Cantos-Cantos, J. M. (2021). Taxes, R&D expenditures, and open innovation: Analyzing OECD countries. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 36. https://doi.org/10.3390/joitmc7010036
5. Chesbrough, H., & Bogers, M. (2014). Explicating open innovation: Clarifying an emerging paradigm for understanding innovation. New Frontiers in Open Innovation. Oxford: Oxford University Press, Forthcoming, 3-28. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2427233
6. Cipolla, C. M. (1969). Literacy and Development in the West. Penguin Books.
7. Del Bo, C. F. (2016). The rate of return to investment in R&D: The case of research infrastructures. Technological Forecasting and Social Change, 112, 26-37. https://doi.org/10.1016/j.techfore.2016.02.018
8. Diebolt, C., & Hippe, R. (2019). The long-run impact of human capital on innovation and economic development in the regions of Europe, Applied Economics, 51:5, 542-563, DOI: 10.1080/00036846.2018.1495820
9. Eurofound. (2024). Role of human capital inequalities in social cohesion and convergence. Publications Office of the European Union, Luxembourg. https://www.eurofound.europa.eu/sites/default/files/2024-09/ef23033en.pdf
10. Eurostat. (n.d.). Graduates in education (EDUC_UOE_GRAD04). https://doi.org/10.2908/EDUC_UOE_GRAD04
11. Eurostat. (n.d.). Gross domestic product at market prices (NAMA_10_PC). https://doi.org/10.2908/NAMA_10_PC
12. Eurostat. (n.d.). Participation rates in education (EDUC_UOE_ENRA31). https://doi.org/10.2908/EDUC_UOE_ENRA31
13. Eurostat. (n.d.). Personnel in R&D by sectors of performance and occupation (RD_P_PERSLF). https://doi.org/10.2908/RD_P_PERSLF
14. Eurostat. (n.d.). Regional gross domestic expenditure on R&D (GERD) by sectors of performance and NUTS 2 regions (RD_E_GERDREG). https://doi.org/10.2908/RD_E_GERDREG
15. Guan, J., & Chen, K. (2012). Modeling the relative efficiency of national innovation systems. Research policy, 41(1), 102-115. https://doi.org/10.1016/j.respol.2011.07.001
16. Lin, Y., & Ye, J. (2024). The impact of corporate R&D on the transformation of intellectual property into intangible assets. Finance Research Letters, 70, 106337. https://doi.org/10.1016/j.frl.2024.106337
17. Listiyoko, L., & Purno, M. (2020, March). Sample Identification Approach by K-Means Clustering In Thinner Retail Market Segmentation. In Journal of Physics: Conference Series (Vol. 1477, No. 2, p. 022004). IOP Publishing. doi:10.1088/1742-6596/1477/2/022004
18. Lucas Jr, R. E. (1988). On the mechanics of economic development. Journal of monetary economics, 22(1), 3-42. https://doi.org/10.1016/0304-3932(88)90168-7
19. Ma, C., & Ji, X. (2024). R&D globalization and enterprise innovation capability. Finance Research Letters, 65, 105613. https://doi.org/10.1016/j.frl.2024.105613
20. Matić, M., Leković, B., & Bobera, D. (2023). The influence of barriers on entrepreneurial intentions: Student entrepreneurship in Western Balkan countries. Anali Ekonomskog Fakulteta u Subotici, 59(50), 51-66. https://doi.org/10.5937/AnEkSub2300016M
21. OECD. (2007). OECD Annual Report 2007. OECD Publishing, Paris. https://doi.org/10.1787/annrep-2007-en
22. OECD. (2015). Frascati Manual 2015: Guidelines for Collecting and Reporting Data on Research and Experimental Development, The Measurement of Scientific, Technological and Innovation Activities. OECD Publishing, Paris. https://doi.org/10.1787/9789264239012-en
23. Our World in Data. (n.d.). Research and development. https://ourworldindata.org/research-and-development
24. Petrov, V., Ćelić, Đ., Uzelac, Z. & Drašković, Z. (2020). Three pillars of knowledge management in SMEs: evidence from Serbia. International Entrepreneurship and Management Journal, 2, 417-438; doi: https://doi.org/10.1007/s11365-018-00557-2
25. Petrov, V., Drašković, Z., Ćelić, Đ. & Uzelac, Z. (2022). Commercializing university knowledge in Serbia – an empirical evidence. Proceedings of the 4th Virtual International Conference Path to a Knowledge Society-Managing Risks and Innovation PaKSoM 2022 – pp: 273-281; ISBN 978-86-82602-00-2
26. Petrov Viktorija (2022) Mogućnosti prevazilaženja jaza između naučno – istraživačkog rada i komercijalizacije, u Mosurović Ružičić, M, Lazarević – Moravčević, M. Nauka i inovacije kao pokretači privrednog razvoja, Institut ekonomskih nauka, Beograd pp: 1-21 ISBN: 978-86-89465-71-6
27. Stamenković, M., Milanović, M., & Janković-Milić, V. (2021). Multivariate Statistical Analysis of Regional Economic Disparities at District Level in Serbia. TEME, 681-698. https://doi.org/10.5937/industrija45-14483
28. UNESCO. (n.d.). UIS Statistics. https://data.uis.unesco.org/
29. World Intellectual Property Organization (WIPO). (2024, November). IP statistics. https://www.wipo.int/en/web/ip-statistics
30. Yin, X., Qi, L., Ji, J., & Zhou, J. (2023). How does innovation spirit affect R&D investment and innovation performance? The moderating role of business environment. Journal of Innovation & Knowledge, 8(3), 100398. https://doi.org/10.1016/j.jik.2023.100398
31. Zhang, X., & He, Y. (2013). R&D-based earnings management, accounting performance and market return: Evidence from national-recognized enterprise technology centers in China. Chinese Management Studies, 7(4), 572-585.
32. Zhang, Z., Luo, X., Du, J., & Xu, B. (2024). Substantive or strategic: Government R&D subsidies and green innovation. Finance Research Letters, 67, 105796. https://doi.org/10.1016/j.frl.2024.105796
33. Zhou, Y., & Dahal, S. (2024). Has R&D contributed to productivity growth in China? The role of basic, applied and experimental R&D. China Economic Review, 88, 102281. https://doi.org/10.1016/j.chieco.2024.102281
Published
2025/04/24
Section
Original Scientific Paper
