The Relationship between the Knowledge Economy and Global Competitiveness in the European Union

Alina Mihaela Dima · Liviu Stelian Begu · Maria Denisa Vasilescu · Maria Alexandra Maassen

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Global Trade and Competitiveness Economic Growth and Productivity Global Politics and Economy

Abstract

The main purpose of this paper is to study the influence of various indicators related to the knowledge economy on country competitiveness in the European Union (EU). Based on the Pearson coefficient and panel-data regression models, we analyzed the Global Competitiveness Index (GCI) in relation to research and development (R&D) expenditure (as a % of gross domestic product (GDP)), percentage of population with tertiary education, lifelong learning, GDP per capita, and debt to equity. The findings highlighted the crucial role of both innovation and education as determinants of EU competitiveness and economic convergence. The development of EU policies regarding the lifelong learning possibilities of the European workforce and the focus on research and development activities can significantly contribute to the competiveness of EU member states.

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References

2004The Knowledge Economy 2002The Impacts of Environmental Regulations on Industrial Activity: Evidence from the 1970 and 1977 Clean Air Act Amendments and the Census of Manufactures 1983Environmental Regulations and Productivity Growth: The Case of Fossil-fueled Electric Power Generation 2014Knowledge-based Economy vs. Creative Economy 2017The Role of Access to Finance in Explaining Cross-National Variation in Entrepreneurial Activity: A Panel Data Approach 2016Knowledge Economy and North Cyprus

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