Determinants Of Innovation Activity in Southeast European Countries
Date Issued
2024-03-16
Author(s)
Josimovska, Tea
Abstract
This paper is dedicated to examining the influence of a number of factors on the global innovation index
in the countries of South-Eastern Europe. The purpose of this study is to explore how various factors,
specifically GDP per capita, education enrollment, population density, and COVID-19, impact
innovation activities in South-Eastern European countries.This research utilizes panel data from 2013-
2021 for nine countries in South-Eastern Europe. A linear regression model was employed, estimated
using the least squares method, and analyzed with E-views and Stata statistical software. The
independent variables studied include GDP per capita, education enrollment, population density, and
the COVID-19 pandemic. Data for these variables are annual and national level. Specifically, education
enrollment is defined as the percentage of the population enrolled in undergraduate studies or
equivalent, according to the International Standard Classification of Education (2011), sourced from
the European Commission's database. Population data and GDP per capita are obtained from the
International Monetary Fund’s World Economic Outlook database. The findings reveal that among the
examined variables, COVID-19 is the only one that shows a statistically significant impact on
innovation, even when correcting for standard errors due to autocorrelation in the model. This paper
offers unique insights into the dynamics of innovation in South-Eastern Europe, highlighting the
significant influence of the COVID-19 pandemic. The results are valuable for policy makers focusing
on economic growth and development through innovation.
in the countries of South-Eastern Europe. The purpose of this study is to explore how various factors,
specifically GDP per capita, education enrollment, population density, and COVID-19, impact
innovation activities in South-Eastern European countries.This research utilizes panel data from 2013-
2021 for nine countries in South-Eastern Europe. A linear regression model was employed, estimated
using the least squares method, and analyzed with E-views and Stata statistical software. The
independent variables studied include GDP per capita, education enrollment, population density, and
the COVID-19 pandemic. Data for these variables are annual and national level. Specifically, education
enrollment is defined as the percentage of the population enrolled in undergraduate studies or
equivalent, according to the International Standard Classification of Education (2011), sourced from
the European Commission's database. Population data and GDP per capita are obtained from the
International Monetary Fund’s World Economic Outlook database. The findings reveal that among the
examined variables, COVID-19 is the only one that shows a statistically significant impact on
innovation, even when correcting for standard errors due to autocorrelation in the model. This paper
offers unique insights into the dynamics of innovation in South-Eastern Europe, highlighting the
significant influence of the COVID-19 pandemic. The results are valuable for policy makers focusing
on economic growth and development through innovation.
Subjects
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