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The Role of Non-R&D Expenditures in Promoting Innovation in Europe

Author

Listed:
  • Leogrande, Angelo
  • Costantiello, Alberto
  • Laureti, Lucio
Abstract
In this article we estimate the value of “Non-R&D Innovation Expenditures” in Europe. We use data from the European Innovation Scoreboard-EIS of the European Commission from the period 2010-2019. We test data with the following econometric models i.e.: Pooled OLS, Dynamic Panel, Panel Data with Fixed Effects, Panel Data with Random Effects, WLS. We found that “Non-R&D Innovation Expenditures” is positively associated among others to “Innovation Index” and “Firm Investments” and negatively associated among others to “Human Resources” and “Government Procurement of Advanced Technology Products”. We use the k-Means algorithm with either the Silhouette Coefficient and the Elbow Method in a confrontation with the network analysis optimized with the Distance of Manhattan and we find that the optimal number of clusters is four. Furthermore, we propose a confrontation among eight machine learning algorithms to predict the level of “Non-R&D Innovation Expenditures” either with Original Data-OD either with Augmented Data-AD. We found that Gradient Boost Trees Regression is the best predictor for OD while Tree Ensemble Regression is the best Predictor for AD. Finally, we verify that the prediction with AD is more efficient of that with OD with a reduction in the average value of statistical errors equal to 40,50%.

Suggested Citation

  • Leogrande, Angelo & Costantiello, Alberto & Laureti, Lucio, 2022. "The Role of Non-R&D Expenditures in Promoting Innovation in Europe," MPRA Paper 114526, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:114526
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    References listed on IDEAS

    as
    1. Seenaiah Kale, 2022. "The influence of non-R&D channels on innovation in a developing economy: an empirical analysis in the context of India," International Review of Applied Economics, Taylor & Francis Journals, vol. 36(2), pages 205-221, March.
    2. Zhouyi Wu & Chuncao Wang & Bin He & Siying Yang, 2022. "State‐owned industrial enterprises' non‐R&D innovation and regional total factor productivity: An analysis based on the panel co‐integration method," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3338-3347, December.
    3. Leogrande, Angelo & Costantiello, Alberto & Laureti, Lucio, 2022. "The Export of Medium and High-Tech Products Manufactured in Europe," MPRA Paper 114215, University Library of Munich, Germany.
    4. Thomä, Jörg & Zimmermann, Volker, 2019. "Non-R&D, interactive learning and economic performance: Revisiting innovation in small and medium enterprises," ifh Working Papers 17/2019, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
    5. Hervás-Oliver, José-Luis & Parrilli, Mario Davide & Rodríguez-Pose, Andrés & Sempere-Ripoll, Francisca, 2021. "The drivers of SME innovation in the regions of the EU," Research Policy, Elsevier, vol. 50(9).
    6. Leogrande, Angelo & Costantiello, Alberto & Laureti, Lucio, 2022. "The Impact of New Doctorate Graduates on Innovation Systems in Europe," MPRA Paper 114452, University Library of Munich, Germany.
    7. Jian Hou & Jiancheng Chen & Hongfeng Song & Gang Wang, 2018. "Are Non-R&D Innovation Activities Actually Effective for Innovation Sustainability? Empirical Study from Chinese High-Tech Industry," Sustainability, MDPI, vol. 11(1), pages 1-14, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Innovation; and Invention: Processes and Incentives; Management of Technological Innovation and R&D; Diffusion Processes; Open Innovation.;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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